The poll shows 59.9 percent of respondents are inclined to switch from fossil fuel to clean energy. People are generally familiar with renewable energy sources.
By
MARIA PASCHALIA JUDITH JUSTIARI, ADITYA PUTRA PERDANA
·5 minutes read
JAKARTA, KOMPAS — The public’s interest in switching to clean energy has become a positive sentiment for investors to capitalize on in the energy sector. However, clean energy programs need to be promulgated further and supported by funding schemes so that renewable energy becomes widely accessible to people in their daily lives.
The public’s positive response was summarized in a report compiled by the Kompas Research and Development division based on a poll titled "Are the People Ready? Transformation and Application of New Renewable Energy, Digital Economy and Green Investment”. Being intended as part of Kompas’ contribution to Indonesia's Group of 20 presidency, the report was submitted to Industry Minister Agus Gumiwang Kartasasmita in Jakarta on Wednesday (19/10/2022).
The poll was conducted during the September 16-19 period through telephone calls to randomly picked 502 respondents from 34 provinces.
The poll shows 59.9 percent of respondents are inclined to switch from fossil fuel to clean energy. People are generally familiar with renewable energy sources. As many as 65.5 percent of respondents know wind power as a source of renewable energy and 60.7 percent know hydropower and bioenergy.
Commenting on the report, Hartanto Wibowo, state-owned enterprise (SOE) PT Perusahaan Listrik Negara (Persero) director for corporate planning and business development, said the public’s interest in energy transition especially showed by the educated and people of higher income, boded well for the future. It helps Indonesia, as the rotating president of the G20, to build opportunities for its commitment to energy transition.
“When people are willing to shift to a green lifestyle, Indonesia's investment potential in green energy is getting bigger. This will open up various job opportunities. The industry will also grow. The energy transition being developed will allow the use of domestic components [local content requirement or TKDN] to increase," he said.
When people are willing to shift to a green lifestyle, Indonesia's investment potential in green energy is getting bigger.
Minister Agus said the poll results could contribute to the government's references in formulating energy transition policies. "We must pay attention to the energy transition [in terms of] its equitability and affordability," he said.
A transition to a more environmentally friendly industry, Agus said, required the adoption of technology and the application of environmental, social and governance (ESG)-based principles by business players.
Regarding the implementation of the ESG, East Ventures partner Melisa Irene pointed to the development of a monitoring and measuring framework for ESG impacts as a challenge for the companies relying on multi-funding sources. "As an example, for the companies operating in the health sector, [it must be assessed] what the environmental indicators are," she said.
PT Pan Brothers Tbk vice CEO Anne Patricia Sutanto asserted her company’s commitment to supporting energy transition by establishing the Net Zero Hub. She said efforts to encourage the shift to clean energy were related not only to building infrastructure, but also to export products to Group of Seven (G7) member countries.
“They [G7 members] are the first [to go to energy transition]. In order not to lose the market in these countries, Pan Brothers has taken the initiative at the domestic level to become a pioneer. Apart from being related to the market, [energy transition] will be beneficial for Indonesia, in terms of health or the economy, as the pollution level will become lower," Anne said.
People’s affordability
Despite the encouraging interest in energy transition, the respondents who are prepared to pay more for renewable energy tariffs only account for 25.8 percent, as the Kompas poll shows. As many as 29.5 percent of respondents say they are not ready for a green energy shift, nor willing to pay more for renewable energy tariffs, while those who are not ready but willing to pay more constitute 26.4 percent.
Kompas’ senior researcher Bambang Setiawan said the energy transition program initiated by the government would need to be aimed at community groups with high interest, willingness and affordability. "It may start with community groups with a high socioeconomic status and those in urban areas," he said.
With 75.9 percent of respondents having yet to get familiar with the energy transition programs, the government needs to step up green energy campaigns among citizens.
The poll results have also revealed the problems faced by micro and small enterprises (MSEs), either at the upstream or downstream level. At the upstream level, the main problem is related to capital, while at the downstream level, MSEs need assistance in product promotion, market digitization and product certification.
In promoting green businesses among the MSEs, according to Lazada Indonesia executive director Ferry Kusnowo, the training program must be simple and easy to understand. “It is often the case, up to 100 people participate in a training program but the number of those who follow up [the training] with online selling is less than double digits. In fact, micro, small and medium enterprises [MSMEs] are the pillars of digital transformation," he said.