The Indonesian House Of Representatives Has Approved The National Energy Policy Bill, Aiming For An 8 Percent Economic Growth Adaptation

The XII Commission of the Indonesian House of Representatives (DPR RI) has approved the draft government regulation (RPP) on the National Energy Policy (KEN), presented by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, who is also the daily chair of the National Energy Council (DEN), on Monday, February 3, 2025. This RPP KEN aligns with President Prabowo Subianto's target of achieving 8 percent economic growth by 2029. A key focus in developing the RPP KEN is to ensure that the National Electricity General Plan (RUKN) is in sync with the Electricity Supply Business Plan (RUPTL), which also aims for the same economic growth target.

Bahlil explained, "We have collaborated for about two weeks to ensure that per capita electricity needs reflect the 8 percent target. The President approved this through a signed letter on September 17, 2024," as quoted from the Ministry of ESDM's website. This change is based on studies from the National Development Planning Agency (Bappenas), DEN, and the Institute for Development of Economics and Finance (Indef).

The studies indicate that an 8 percent economic growth can be achieved with contributions from various sectors, including manufacturing, agriculture, construction, digital economy, tourism, transportation, food and beverage industry, and financial services. Bahlil added that the RPP KEN is designed to emphasize the crucial role of renewable energy and energy conservation (EBTKE) in reaching the net zero emission (NZE) target by 2060. He noted that the RPP KEN aims for a minimum use of EBTKE of 60-70 percent during the 2025-2040 period. Sugeng Suparwoto, the Deputy Chair of the XII Commission, stated that each faction expressed their views and agreed with the RPP KEN. The Nasdem Party legislator mentioned that discussions on the RPP KEN have been ongoing since late 2022 in the VII Commission of DPR RI, continuing until the end of President Joko Widodo's administration.

During Jokowi's era, Sugeng noted that the average economic growth assumption was 6.2 percent, while Prabowo aimed for 8 percent growth. Sugeng explained that these growth assumptions need to be adjusted to align with the set targets. "Energy availability covers various aspects, including electricity, oil, and gas, among others. Therefore, the RPP KEN has been developed as an adaptation to Prabowo's economic growth plans," Sugeng stated, as reported by the DPR RI website. He added that fossil fuels will not be completely eliminated but will have their emissions reduced through various methods. "For instance, one way is to utilize ultra super critical coal-fired power plants to significantly lower carbon emissions. So, once again, we will continue to use fossil fuels while transitioning towards new and renewable energy," Sugeng explained.

Tag: DPR RI National Energy Council National Energy Policy