Urgency of Enacting RUU EB-ET for Alternative Energy Development

The global shift towards new and renewable energy (NRE) is crucial in combating climate change and reducing reliance on fossil fuels. Despite Indonesia's wealth of natural resources, including significant NRE potential, the underutilization of these resources persists due to various challenges. In this article, our Partner Caesar Aidil Fitri delves into the urgency of enacting the NRE Bill, locally known as Rancangan Undang-Undang Energi Baru-Energi Terbarukan (RUU EB-ET) and why it matters.

Definition of NRE

Article 1 of the NRE Bill defines new energy as emerging from innovative technologies processing both non-renewable and renewable sources. On the other hand, renewable energy is derived from sustainable sources.

New energy encompasses newly discovered and commercially developed sources, such as nuclear energy, compressed natural gas (CNG), and liquefied natural gas (LNG). These sources are deemed new due to limited past development and are non-renewable, lacking the ability to be replenished in the short term.

Conversely, renewable energy is naturally replenished and sustains over an extended period. Examples include solar energy, wind energy, hydro energy, ethanol, and biodiesel.

The Urgency of Enacting the NRE Bill into Law

European countries, such as Iceland, lead in renewable energy adoption, with 86.87% of its energy generated from renewables, followed by Norway at 71.56%, and Sweden ranking third at 50.92%. In stark contrast, Indonesia currently ranks 43rd globally, utilizing only 10.39% of renewable energy.?

Urgent action is needed through the enactment of the NRE Bill, which was approved for deliberation during the 25th Plenary Session.? However, its deliberation has been on hold since the G20 Summit in 2022. This legislation is pivotal for NRE development, aligning with global commitments like the Paris Agreement and aspiring to achieve carbon neutrality by 2060.

The delay in enacting the NRE Bill can be attributed to various issues, including environmental concerns. A notable challenge is the lack of consensus between the government and the House of Representatives on the inventory list of issues for nuclear energy. Discussions on power wheeling or the utilization of state-owned electricity company PT PLN's network by private entities have also become critical in the transition to renewable energy.

Nevertheless, I believe that the scheduled approval of the NRE Bill this year requires public input to align with existing laws, such as environmental, mining, and tax laws. Equally important is stakeholders' attention to the separation of these two bills into distinct laws.

NRE sources are eco-friendly, producing no harmful gasses like carbon monoxide, carbon dioxide, sulfur, or nitrogen oxides. Despite substantial initial investments, the long-term cost-effectiveness of NRE surpasses that of fossil fuels by eliminating the need for continuous fossil fuel purchases.

The government's initiative to promote NRE sources involves the development of electric vehicles. Presently, automotive manufacturers are in fierce competition to create environmentally friendly electric vehicles, aiming to reduce dependency on oil-based fuels.

Indonesia finds itself at a crucial point in its energy transition. Hence,? enacting the NRE Bill is more than a legal procedure; it represents a crucial move toward a sustainable future. Collaborative efforts among the government, stakeholders, and corporate entities are vital to overcoming challenges and unlocking Indonesia's NRE potential.