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ABB: Indonesia May Miss Net Zero Goal, but Progress Matters More

Faisal Maliki Baskoro
March 5, 2025 | 2:12 pm
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Anders Maltesen, President of Energy Industries, Asia, at ABB, speaks at a media event in Jakarta on Tuesday, March 4, 2025. (Handout)
Anders Maltesen, President of Energy Industries, Asia, at ABB, speaks at a media event in Jakarta on Tuesday, March 4, 2025. (Handout)

Jakarta. Indonesia may not achieve its net zero emissions target by 2060, but that doesn’t matter as long as the country stays committed to the transition, according to Anders Maltesen, President of Energy Industries, Asia, at ABB. He believes that while the path will be challenging, steady progress and collaboration will ensure Indonesia reaches its goal, even if it takes longer than expected.

“If we look at a linear curve, it seems like we’ll never make it,” Maltesen told the Jakarta Globe on Tuesday. “But if we focus on an exponential curve, we can get there faster. The key is collaboration—between industries, governments, and consumers.”

Indonesia has committed to achieving net zero emissions by 2060 or sooner, aligning with its status as a signatory to the Paris Agreement. However, concerns persist over the implementation of key green financing initiatives such as the Just Energy Transition Partnership (JETP), a $21.5 billion aid package backed by the International Partners Group (IPG), including the US, Japan, France, and the EU. Energy Minister Bahlil Lahadalia recently expressed frustration, stating that no funds from the JETP had yet reached Indonesia. Meanwhile, Hashim Djojohadikusumo, the younger brother of President-elect Prabowo Subianto, has labeled the JETP “a failure,” citing the lack of disbursed aid.

Despite these setbacks, Maltesen remains optimistic, emphasizing the role of innovation in accelerating the transition. He pointed to advances in solar and wind power efficiency, as well as deeper geothermal drilling, which could make renewable energy more accessible across Indonesia. “Thirty years ago, solar panels had 12 percent efficiency. Now we’re seeing 28 percent, and in another decade, we’ll likely surpass 30 percent. That’s massive,” he said.

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ABB, a 140-year-old technology company, is modernizing Indonesia’s energy infrastructure through key projects nationwide. In Aceh, it upgraded the control system at H2O2 Pupuk Iskandar Muda (PIM), reviving the factory after 21 years and reducing reliance on hydrogen peroxide imports. At PLTU Asam-Asam, a power plant supplying South and Central Kalimantan, ABB improved the boiler system to enhance efficiency and maximize capacity. For PLTU Suralaya Unit 6 and Unit 7, a 3,400 MW power source for Java and Bali, ABB implemented Symphony+ to boost reliability and add new features. Additionally, ABB continues to support Indonesia’s renewable energy transition by optimizing geothermal and hydropower potential.

“The transition to green energy requires time and investment, but reducing emissions from existing fuel sources is a crucial step to bridge the gap and pave the way for a cleaner future,” Maltesen said. “We have a long history in Indonesia and will continue collaborating with key stakeholders across the energy sector to drive progress through the adoption of advanced industrial technologies.”

Indonesia remains heavily reliant on coal, which accounts for 67 percent of its electricity generation. In contrast, hydropower contributes 7 percent, and natural gas makes up 13 percent, according to the International Energy Agency (IEA). The country produced 320,000 GWh of electricity in 2022, with CO2 emissions from fuel combustion reaching 651.671 million metric tons—equivalent to 1.9 percent of global emissions.

Maltesen underscored the importance of perseverance in overcoming obstacles, whether financial or technological. “Some countries may achieve net zero sooner, some later, but what matters is that we keep pushing forward. The most important thing is that we don’t give up,” he concluded.

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