“Renewable Innovation Forum: Sustainable Off-grid Electrification and Renewable Energy Opportunities in Indonesia” is a collaboration between Purnomo Yusgiantoro Center (PYC), International Power Supply (IPS) A.D., and Indonesian Embassy for Bulgaria in Sofia. The event was held at Hotel Indonesia Kempinski, Jakarta on Thursday, 22nd February 2018. The event was opened by Prof. Purnomo Yusgiantoro as the representative of PYC and H.E. Sri Astari Rasjid as the Indonesian Ambassador to Bulgaria. The keynote speech was delivered by H.E. Ignasius Jonan as the Minister of Energy and Mineral Resources of the Republic of Indonesia.
Welcoming Speech by a PYC Board Member
A Welcoming Speech Delivered by Prof. Purnomo Yusgiantoro, Ir., MSc., MA., Ph.D. (A Board Member of Purnomo Yusgiantoro Center)
Mr. Purnomo Yusgiantoro officially welcomed the Minister of Energy and Mineral Resources (Mr. Ignasius Jonan), the Ambassador of Indonesia to Bulgaria (Mrs. Sri Astari Rasjid), the Ambassador of Bulgaria to Indonesia (Mr. Sergey Michef), and all participants of the forum. The Renewable Innovation Forum is a collaboration between Indonesian Embassy for Bulgaria, International Power Supply (IPS), and Purnomo Yusgiantoro Center (PYC), as a discussion platform on advanced technology of renewable energy and a momentum for MOU signatory between IPS and the three key energy research organisation in the country: Institut Teknologi Bandung (ITB), University of Defence (UNHAN), and PT LEN Industri.
Welcoming Speech by Indonesian Ambassador to Bulgaria
A Welcoming Speech Delivered by H.E. Astari Rasjid (The Indonesian Ambassador to Bulgaria)
As an effort to curb the effect of greenhouse gas emission, the Indonesian government sets out to achieve 23% renewable energy use by 2025 and 31% by 2050. To achieve this target, International Power Supply (IPS), as one of the leading manufacturers of energy conversion technologies presents today, delivers a serious commitment to expand its business network in Indonesia. IPS’ first project in Indonesia was implemented in Solo and specifically tailored to meet the requirement of a hybrid and off-grid power system. Both indirect and direct investment plays an important role in assuring the sustainability of economic growth, thus, President Joko Widodo is pleased to welcome any foreign companies to initiate such energy project in the country. However, the technology imported to Indonesia should be environmentally friendly and used as much of skilled Indonesian workers as possible. Even then, actions to enhance the skill of those domestic workers and transfer of technology are obligatory for any foreign businesses operating in Indonesia.
Keynote Speech by an IPS Representation
A Keynote Speech Delivered by Mr. Alexander Rangelov (CEO of International Power Supply (IPS))
The idea of establishing collaboration with Indonesian energy sector was inflicted about 1.5 years ago when Mr. Alexander incidentally ran into the Indonesian Ambassador to Bulgaria and briefly discussed energy, power, and the future. It is such an amazing milestone to celebrate today’s forum and for more collaboration in Indonesia in the near future.
International Power Supply (IPS) is a developer and manufacturer of the power system that has been around for nearly 30 years. Its operating system has been implemented in 58 countries on 7 continents and won many prestigious awards. In 2014, IPS won the World Innovation Award for the best off-grid electrification technology system and energy storage in Munich, Germany. In 2016, IPS won the SpaceX Innovation Award which was personally awarded by Elon Musk.
IPS presents today in Indonesia is to show its commitment to the future and to share technological knowledge for the benefit of the country. As a start, its first Indonesia’s project was in the city of Solo on a smart mini-grid system for a local bus terminal. IPS pledged to make Indonesia its second home for investment and creation of local content. Mr. Alexander closes his speech by delivering appreciation for Purnomo Yusgiantoro Center (PYC) for organizing the event.
Keynote Speech by Indonesia’s Ministry of Energy and Mineral Resources
A Keynote Speech Delivered by H.E. Ignasius Jonan (The Indonesia’s Ministry of Energy and Mineral Resources)
The Indonesian Government has committed to enhance the performance of renewable energy in the power sector as well as in the transportation sector, by setting the target of 23% share of renewable energy in the total energy mix by 2025. It is not going to be an easy road to achieve such an ambitious target as the priority is not only about full electrification but also equitable energy. Equitable means that everyone, even the poorest in the most remote area can afford and access electricity. Therefore, it is important to note that if IPS wants to do business in Indonesia, making sure of affordability aspect is an obligatory.
The national electrification ratio was up by 4% between 2016 and 2017, achieving the ratio to 95.35%. While it was a great achievement, there is still more work to be done to achieve 100% electrification ratio by 2019. The 11 million Indonesian people who are still living without electricity presents an opportunity for IPS to introduce off-grid energy system. At the moment, three sectors emphasized by the Indonesian Government are geothermal, hydropower, and wind turbines. Solar panel, on the other hand, is tricky to be pursued considering the economic condition in the country compared to the global trend. Therefore, foreign investors are very much welcomed to bring in the technology and reduce the levelized cost of electricity to a level of 5-7 cents/kWh. In last year only, a total of 1.2GW of renewable energy projects was signed. However, there are still some businesses who complained that the profit is not beneficial enough. As the minister, he decisively stated that equitable energy comes first, so the atmosphere of competition for profit reduction is present.
One example to deliver electricity to households without access to electricity is for households to have an independent solar panel for each house in remote villages. The task is to keep on moving forward with innovation and implementation to ensure a fair distribution of energy access. Anyone can now propose if their electricity is to be supplied by PLN (the National Electricity Company) or by an independent electricity system thus, giving flexibility and opportunity for many businesses to enter the market. However, it is important to do a step-by-step approach in developing the project. It does not have to be a grand-scaled project but should be driven by a solution that can be implemented quickly. To start doing one small project and to avoid a long-term roadmap are some advice given by the Minister for foreign investors in entering the Indonesian market.
MoU Agreement, co-signed separately between:
- IPS and ITB, represented by Alexander Rangelov as the CEO of IPS and Prof. Dr. Wawan Gunawan Kadir, M.S. as the ITB’s Vice Rector of Finance, Planning, and Development
- IPS and the University of Defense (UNHAN), represented by Alexander Rangelov as the CEO of IPS and Mr. Yoedhi Swastanto as the rector of UNHAN
- IPS and LEN Industri, represented by Alexander Rangelov as the CEO of IPS and Mr. Zaki Gamal Yasin as the CEO of LEN Industri