Cross-Sector Collaboration is Needed to Face the Energy Trilemma Challenge
Cooperation and support from various sectors, including academia, is needed to overcome the challenges of the energy transition.
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Pertamina Goes to Campus 2024 event at the Bandung Institute of Technology, Bandung, West Java, Monday (6/5/2024).
BANDUNG, KOMPAS — Funding, technology and human resources are still challenges for the realization of the energy transition program in Indonesia. Cooperation and support from various sectors, including academia, is needed to overcome challenges more quickly.
Director Main PT Pertamina (Persero) Nicke Widyawati said that the energy industry in Indonesia is currently facing an energy trilemma, namely the issue of energy security, affordability of energy costs and environmental sustainability. His party plays a big role in responding to these challenges, as well as warding off global threats due to geopolitical factors and ongoing market fluctuations.
“The challenges faced by Indonesia in relation to energy are increasingly difficult. We all have to move together because it cannot be solved by the government or companies alone. Academics also have a big role. "We need contributions from all parties, including from students who will be the future of the nation," said Nicke at the Pertamina Goes to Campus 2024 event at the Bandung Institute of Technology, Monday (6/5/2024 ).
Also read: Indonesia Must Take Opportunities in the Energy Transition
Each country has a different way of responding to the energy trilemma. For example, developed countries are more focused on sustainability, while developing countries are more focused on energy security and affordability because they are catalysts for economic growth.
Nicke stated that to harness Indonesia's important potential, Pertamina plays three important roles in shaping the energy landscape. Firstly, to ensure Indonesia's energy resilience by increasing supply capacity to support economic growth.
Moving forward, the second role is to mobilize domestic resources to reduce the oil and gas trade deficit by increasing the use of domestic energy sources. Third, carrying out decarbonization, energy efficiency, and energy transition, with the target of Net Zero Emissions (NZE).
Some of the strategies that his party is implementing are optimizing upstream production and increasing Pertamina's refinery production so that it can reduce imports. Then, Pertamina also strengthened the use of energy transition, such as the use of city gas networks, increasing geothermal power capacity, and the use of vegetable resources, including biofuel.
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Pertamina Goes to Campus 2024 event at the Bandung Institute of Technology, Bandung, West Java, Monday (6/5/2024).
Pertamina is also optimizing all of its human resources to implement various strategies. However, this will not work without the support of all parties, including collaborations with the academic sector.
However, Nicke admits that there are obstacles that Indonesia faces in accelerating energy transition. Factors such as access to competitive financing, technological advancements, and the improvement of human resources capabilities still pose challenges. Therefore, Nicke emphasizes the importance of appropriate support from various parties.
”Indonesia's human capital in developing the energy transition is still lagging behind. Digitalization must be increased. Energy problems are no longer as simple as they used to be. "The earth needs more treatment," said Nicke.
Meanwhile, Pertamina keeps developing technology innovations internally through research and technology innovation to encourage sustainable energy transition. As for external efforts, the company continues to collaborate with various parties, including urging the younger generation to play an active role in innovation and energy transition.
Also read: Indonesia's commitment to the energy transition is considered weak
Young generation
One of the things done by Pertamina to increase understanding and support from the younger generation regarding energy transition is through education at the university level. Because, students, as the younger generation, will continue energy management.
This education is carried out through various activities, one of which is Pertamina Goes to Campus 2024 (PGTC) which will be held at 15 universities in Indonesia in Java, Sumatra, Kalimantan, Bali and Sulawesi. The series of PGTC activities started at the Bandung Institute of Technology (ITB) as the PGTC Kick Off.
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Pertamina Goes to Campus 2024 event at the Bandung Institute of Technology, Bandung, West Java, Monday (6/5/2024).
PGTC is a Pertamina initiative to conduct discussions and introductions regarding Pertamina's role in the energy and development sector to the entire academic community. Through PGTC, students can support stakeholders in maintaining energy governance in Indonesia.
Nicke hopes that this activity can build awareness, increase involvement, and facilitate collaboration between companies and the academic sector. Then, it provides an opportunity for students to interact directly with energy industry professionals and experts, as well as broaden their knowledge and insights about the challenges and opportunities in the energy field.
According to the plan, PGTC 2024 will be held until September 2024. This event has three main activities. First, energizing talks in the form of a series of keynote speeches, panel discussions, and innovation insights in the energy, technology and economic sectors , and social.
Second, Pertamina Exhibition Clusters, namely the appearance of areas and activation activities for Pertamina's programs or business units or university achievements in the form of booths or pavilions. Third, the Sustainability Competition which is divided into two, namely an essay competition and a video competition, which aims to arouse interest and educate the younger generation towards the environmentally friendly energy industry.
We hope that the synergy between ITB and Pertamina will become stronger and cooperation will increase, especially regarding the use of biodiesel.
PT Pertamina's HR Director, Erry Sugiharto, stated that academics play a role in the development of energy transition, including helping through research. Then, academics can act as consultants and provide inputs and suggestions for the industry based on their research. Furthermore, collaborating in improving students' competencies, assisting in technology transfer from educational institutions to the industry world, as well as helping energy industry professionals by providing continuing education.
ITB Rector Reini Wirahadikusumah stated that they want to invite students to seek new ideas to advance education and human resource development in the energy sector and its derivatives.
Reini appreciates Pertamina's steps to hold PGTC events in various campuses. This proves that Pertamina is committed to education in Indonesia. One of the tangible developments that Reini appreciates is Pertamina's trust in ITB to help build the Research and Molecular Engineering Building.
"We hope that the synergy between ITB and Pertamina will become stronger and cooperation will increase, especially regarding the use of biodiesel," he said.
Although the cooperation between ITB and various industries is running very well, they still face challenges, especially in terms of dividing the time for teaching. Currently, they are determined to balance between fulfilling the academic needs of students and their cooperation with the industry.
The role of the media
According to Deputy Chief Editor of the Daily Kompas Adi Prinantyo, the media plays a role in alleviating the energy transition problem. By writing news according to facts and based on data, the media plays a role in distributing information about energy to the wider community.
In addition, the media must have a way to package important but difficult-to-understand issues into something interesting and more easily understood, without abandoning the accurate and fact-based function of the press.
"The media serves as the forefront in amplifying enlightening information. This is because there is a tendency for the community to avoid reading news due to its serious tone and containing a problem," he said.
Adi continued, mass media is different from social media. The mass media has a responsibility to educate, entertain, and inspire readers. In its writing, mass media also seeks alternative solutions to various issues discussed, which is not possessed by social media.
As a change agent, students, according to Adi, must read quality and inspiring literature. Therefore, the involvement and access of students to quality media must be facilitated.
"For example, Kompas is currently collaborating with PT Pertamina to inspire students by making it free for thousands of students at several universities to access Kompas.id (digital Kompas) for one year. "Then, to give voice to young people in writing opinions regarding their interests, including in the energy sector, Kompas also provides the Kompas Muda column on the Kompas platform," he said.
Weakened
On the other hand, Indonesia's commitment to energy transition is considered to have weakened, while several member countries of the International Energy Agency or IEA have committed to tripling the global capacity of renewable energy. This was mentioned by energy economist observer and lecturer at the Department of Economics and Business at Gadjah Mada University's Vocational School, Fahmy Radhi.
Fahmy stated that the condition can be seen, among other things, from the still low realization of renewable energy in the primary energy mix, which is only 13.1 percent by the end of 2023. However, there is a target of 23 percent by 2025. In addition to policy synchronization, a good investment climate and serious efforts to gradually reduce dependence on fossil energy are also needed.
"There must be a strong commitment from the government because there is a paradigm shift from fossil energy to renewable energy. Regulations to support this have not yet been ratified, such as the New and Renewable Energy Bill. There is also a need for improvement to the Electricity Law (to support the acceleration of renewable energy)," said Fahmy (Kompas.id, 17/2/2024).
According to Fahmy, two important factors in energy transition are funding and technology. Therefore, a conducive investment climate in the field of renewable energy must be created. The funding commitment from the Just Energy Transition Partnership (JETP) or from developed and private countries, worth 21.5 billion US dollars (mostly concession loans), is also unclear. According to him, if it's just a commitment, it will be difficult to expect.
Fahmy also urges that one policy and another policy must support each other, for example, how renewable energy can be encouraged while at the same time there is clarity on the stages of reducing fossil energy such as coal. According to him, there needs to be integrated policies.
