Combination of non-renewable and renewable natural resources for sustainable energy provision in Indonesia

Abstract

Background: Development, as part of the process of advancing civilization, requires energy as one of its fundamental resources. This paper discusses the planning of a scenario for the utilization mix of non-renewable and renewable natural resources for sustainable energy supply in Indonesia. Methods: The quantitative method is used to determine the amount of energy imports that need to be reduced by utilizing renewable energy, the amount of renewable energy potential that can be optimized, and recommendations for a more ambitious but realistic energy mix. The qualitative method is used to identify which recommendations are currently effective, which are not, and those that have not yet been proposed to improve an energy mix that meets sustainability aspects. Findings: The results of a system dynamics model review support the need to accelerate the optimization of renewable energy utilization to achieve energy resilience and a strategy for developing low-carbon emission energy. To optimize the use of renewable energy, fiscal incentives from the government are necessary, along with the restructuring of energy prices to make renewable energy more competitive, support for renewable energy technology development, PLN’s (State Electricity Company/Perusahaan Listrik Negara) commitment to using renewable energy with government incentives, and consistent implementation of renewable energy regulations.  Conclusion: The energy mix strategy during this transition period is to continue increasing oil production through exploration and Enhanced Oil Recovery (EOR), optimize gas and coal with clean technology, and aggressively utilize renewable energy to reduce the oil import gap while transitioning to renewable energy to achieve a sustainable energy future. Novelty/Originality of this article: This article lies in its integrative use of system dynamics modeling and a mixed-method approach to propose a comprehensive, ambitious-yet-realistic energy mix strategy for Indonesia that balances non-renewable and renewable resources to achieve energy sustainability and reduce dependency on imports.