Perpustakaan Digital ITB

Net-Zero Emission (NZE) is an idea that emerged from the Paris Agreement in 2015. Many countries, including Indonesia, have committed to achieving NZE. Climate Change Performance Index (CCPI), as an indicator that provides comparative scores between countries, shows Indonesia is ranked quite far. This study aims to examine the progress of Indonesia's strategy in achieving NZE. This final project assesses Indonesia's readiness to achieve NZE based on a gap analysis (GHG emission reductions in the energy sector, the integration of renewable energy (RE), renewable energy investment costs, coal capacity increases, and Indonesia's electric vehicle population), questionnaire results, and evaluation of Indonesia's strategy. This study will then provide alternative policy recommendations that can help drive the energy transition. Based on the gap analysis, questionnaire results, Indonesia is not yet ready to achieve NZE 2060. Improvements are needed in efforts to reduce coal-fired power plants and increase the integration of RE. To help encourage the transition from coal-fired power plants to RE, the government must increase RE capacity by 2 GW/year and focus on increasing EBT in solar power plants in Kalimantan. In addition, the government can raise coal prices and impose a carbon tax to increase the price of coal-fired electricity to USD 0,068/kWh to compete with the price of electricity from the Cirata solar power plant. Another effort is to create a Climate/Net-Zero Act to show determination and use an auction scheme to lower EBT prices and transparency to attract investors.