Indonesia Faces Challenges in Renewable Energy Development
Lamseen – Indonesia, known for its vast natural resources and technological advancements, continues to struggle in advancing its renewable energy sector. According to Muhaimin Iqbal, a prominent Indonesian researcher in renewable energy, the primary obstacle is not a lack of resources or technology but a lack of political and economic willingness to prioritize clean energy.
During a discussion on the Forum Carbon Indonesia YouTube channel with environmental activist Poempida Hidayatulloh, Muhaimin highlighted the disparity between Indonesia’s potential and its progress. “The issue isn’t technology; we already have well-established and widely available renewable energy technologies,” he explained. For instance, other countries are now using advanced hydrogen production technologies that Indonesia has developed.
Muhaimin revealed that Indonesia possesses the raw materials necessary for producing advanced renewable fuels, with 17 key materials identified as targets. However, despite this wealth of resources and technological know-how, the country has failed to make significant strides in renewable energy development. “It’s not a production issue; it’s a matter of interests and priorities,” Muhaimin emphasized.
He pointed out that Indonesia’s focus on exporting its renewable energy technologies and resources to other countries further underscores the misalignment in the country’s priorities. While nations abroad benefit from Indonesia’s innovations, local adoption remains slow, hindered by policy, investment, and institutional inertia.
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Indonesia faces a paradox in its energy sector: abundant renewable energy resources remain untapped while the country continues to rely on costly imports. Renewable energy researcher Muhaimin Iqbal highlighted this issue, using Indonesia’s heavy dependence on imported liquefied petroleum gas (LPG) as an example. Despite the feasibility of producing bio-LPG domestically, a solution widely implemented in the United States and Latin America, Indonesia has yet to take significant action. “It’s ironic,” Muhaimin remarked. “We know how to produce bio-LPG, but no one in Indonesia takes the initiative.”
Muhaimin also emphasized the affordability of renewable alternatives. Producing 1 kg of LPG equivalent with bio-LPG requires only 3 kilograms of charcoal, costing around Rp6,000. In contrast, the market price of unsubsidized LPG is approximately Rp18,000 per kg. Similarly, hydrogen, which state-owned companies sell at $6 per unit, can be produced locally from charcoal for just $1.
Highlighting global interest in Indonesia’s renewable energy capabilities, Muhaimin shared requests from Mexico and the United States to develop hydrogen fuel for low-flying aircraft in the Maldives. These aircraft require quiet engines, making hydrogen fuel cells an ideal choice. Hydrogen production from biomass or charcoal, abundant on Indonesia’s 17,500 islands, offers a cost-effective solution. “It’s very cheap. We can compete internationally, but it’s just a matter of willingness,” he concluded.
Muhaimin’s observations point to a critical challenge: conflicting interests and lack of political initiative continue to hinder the development of renewable energy in Indonesia. By prioritizing domestic production and leveraging its vast resources, Indonesia could significantly reduce energy costs while contributing to global clean energy advancements.
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