Jakarta. Indonesia's new and renewable energy (EBT) utilization remains significantly below target despite the country's vast potential, according to Mohammad Faisal, Executive Director of the Center of Reform on Economics (Core).

The government aims for sustainable energy to account for 19.49 percent of the national energy mix in 2024, with a goal of 23 percent by 2025.

However, the capacity of new and renewable energy power plants reached only 13,155 MW in 2023, representing about 13 percent of the total energy mix. In the first half of 2024, installed capacity increased by a mere 217.73 MW.

"The use of renewable energy is still far from the target, especially considering Indonesia's vast potential in solar, wind, water, and geothermal resources," Faisal stated on Monday.

He emphasized that accelerating EBT adoption requires strong political commitment and effective strategies. While initial investments are high, long-term production costs could be significantly lower. Faisal urged the government to provide incentives and explore diverse funding sources beyond the state budget, such as corporate social responsibility (CSR), international funds, and carbon trading.

Meanwhile, Star Energy Geothermal, a subsidiary of Barito Renewables Energy (BREN), plans to significantly increase its green energy capacity. Barito Renewables CEO Hendra Tan announced that the company intends to add 102.6 MW through retrofitting and new projects, with an estimated investment of $346 million (Rp 5.43 trillion).

Expansion efforts include adding 40 MW to Salak Unit 7, 30 MW to Wayang Windu Unit 3, and retrofitting various units to increase capacity by 32.6 MW. The collaboration with Pertamina Geothermal Energy (PGEO) on geothermal fluid sampling and analysis will also enhance operational efficiency.

Upon completion, Star Energy Geothermal's capacity will rise to 278.9 MW at Wayang Windu, 428.2 MW at Salak, and 281.5 MW at Darajat.

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