Jakarta. UK-based energy expert Angela Wilkinson said on Monday that Indonesia faces significant challenges in its energy transition away from fossil fuels and its target of achieving net-zero CO2 emissions by 2060.

Most of Indonesia’s power plants still rely on coal, and efforts to promote electric vehicle adoption remain limited in scale, despite generous government subsidies.

A drastic shift away from the existing energy system would have serious implications for the population, especially for vulnerable groups.

Wilkinson, Secretary-General and CEO of the World Energy Council, said Indonesia will need to increase its reliance on renewable energy and adopt a more diverse mix of resources to achieve sustainable and affordable energy.

“Indonesia is trying to reduce its dependency on coal but we also have to get real in understanding that 20 percent of households in Indonesia are still burning biomass and forest wood for their basic energy,” Wilkinson said in an exclusive interview with Jakarta Globe’s sister publication Investor Daily TV.

“So, the additional energy Indonesia needs to support its growing population must go hand-in-hand with the energy transition. This will require a diverse mix of resources and may involve integrating its grids or developing new types of connection systems,” she added.

Every country and region faces unique challenges in their pathways to energy transition, and Indonesia cannot simply adopt the policies and strategies used by other countries.

Indonesia must define its own vision for the future and ensure that its energy transition fits into that vision.

“It’s not the other way around. It’s not about what Europe thinks Indonesia should be doing,” Wilkinson said.

In the interview, held on the sidelines of the Abu Dhabi International Petroleum Exhibition & Conference, Wilkinson recounted her visits to different regions, where she heard varied accounts of energy transition journeys and levels of success.

For example, China has made significant progress in providing renewable energy and electric vehicles while transitioning from an industrial society to an “ecological civilization,” she noted.

“When we come to Africa, which has very little infrastructure, we hear a different story,” she said. “The energy system of the United States is not the same as the energy system for a region or a country like Indonesia. There are very different circumstances. So, countries have to live with and learn from each other — they need to collaborate.”

Wilkinson said collaboration extends beyond government bodies or business leaders.

“The transition we are facing requires us all to understand that we have a role to play, and we must ensure everyone can share in the benefits of the coming changes,” she said.

While the potential of artificial intelligence (AI) to accelerate the energy transition is appealing, Wilkinson cautioned that it’s a double-edged sword.

“AI’s big data can be used for predictive analytics to boost productivity and efficiency, which is great because we waste half the energy we produce in the world,” she said. “However, to perform all that computing, we need more energy.”

She explained that AI is estimated to consume 8 percent of the world’s energy demand, equivalent to the entire energy use of the United States.

“If we’re really going to leverage AI to help bring everyone along, we have to recognize that most energy-related data is currently behind paywalls, rather than in the public sector,” she added.

“So, Indonesia is a very challenging design of a new energy system but I’m sure that the commitment of Indonesia itself and the support of many neighbors and friends abroad will find a way of helping Indonesia.”

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