the ability of transitional from fossil to non fossil energy is unique across the countries. Hence, sympathetic cooperation among states and consideration of the existing facilities should be taken in to account

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Implications of the global transition to non-fossil energy
By: Sampe L. Purba
In the first week of December 2019, a two-day state-level Ministerial meeting for the family
members of the International Energy Agency (IEA) held in Paris. The theme raised was
"Building The Future of Energy". The IEA is an autonomous intergovernmental organization
of developed countries within the Organisation for Economic Cooperation and Development
(OECD). It was initially formed as a response to the 1974 oil crisis to ensure the stability of oil
supply.
Nowadays, the mission and mandate of the IEA has been extended to the three pillars of energy
policy, consisting of energy security, economic development and environmental protection.
This is very much in line with the United Nations objective as stated in Paris Agreement 2015.
The very core of the accord is to reduce global warming below 20C caused by carbon dioxide
(CO2) emissions that piling up the greenhouse gas effect.
In the communique issued at the end of the meeting, accessible on the IEA website, there is an
enthusiastic address and desire to transition from the use of fossil energy to renewable energy
which is claimed not only environmentally friendly but also efficient in terms of carbon dioxide
emissions. The communique states the energy sector is the source of over 85% of CO2 global
emissions. The most significant contributor to said emissions are fossil fuel such as coal,
petroleum and natural gas.
The IEA stresses that future development priorities supported by the provision of energy must
be based on low-emission technologies that promote clean, sustainable, and affordable energy
which are safe and efficient. They also ensure and encourage that the flow of funds and aid to
countries to some extents will depend on how those countries dealing with their policies,
commitments and actions towards reducing the emission of CO2. The euphemistic narrative
tagline is a transitional program to clean energy.
In the same week, the UN Climate Change Conference known as COP25, took place in Madrid
raising the same theme. The event stresses that the only step forward to save the globe is a
concrete collective action and effort to combat and save the climate change. One of the
recommendations to be submitted to the OECD countries is to reduce/stop aid to countries that
develop and utilise fossil energy.

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The implications of this recommendation are severe. For example, countries and corporations
in developed countries may not finance the development of energy sector initiatives that use
fossils, such as oil refineries, coal-fired power plants, or exploration and production of gas
fields. Another example includes unilateral actions that limit the market or put embargo or
impose high duties on products from developing country considered damaging to the
environment such as plantation and forestry commodities.
However, not all developed countries agree with the policy. Japan, which is still highly
dependent on fossil energy and is heavily involved in assisting countries in the region with
coal-fuelled technology, voiced their opinion and concerns against the common stand of
Madrid conference.
The transition to non-fossil energy must be gradual and adjusted by taking into account the
conditions of each country. Many countries still rely on fossil energy as their source of income,
provide job opportunity and daily consume. Not to mention that under current stage, the price
and technologies used are more competitive, cheaper and more abundantly available as local
natural resources. Therefore, forcing a drastic shift to new energy will paralyse and impoverish
those countries, and this may be seen as a new form of injustice. This is in opposition to the
pledge of ‘no one country is left behind’ as adopted by United Nations under Sustainable
Development Goal of calling the action to end poverty, that ensure all people enjoy peace and
prosperity.
Implications for Indonesia
Indonesia has an ambitious big target and put significant efforts to reduce greenhouse gas
emissions up to 29% from business as usual (BAU) of 41% by 2030. Indonesia also has a new
renewable energy target of 23% by 2025 in the energy mix. Expanding the use of bioenergy,
like as currently promoted in the B 30 biofuel and hopefully increased to B50 and beyond in
the coming years, is a real effort to reduce dependency upon fossil fuel.
Indonesia is working hard and putting in policy to increase the proportion of renewable energy
sector such as solar power, hydropower, geothermal energy, wind power and biomass, in the
energy mix. Indonesia as a hemispheric country is endowed with natural environment consists
of plenty of clouds, heavy rainy season and some unstable wind. In this context, the use of
fossil-based energy, such as gas, is understood as inevitably preferred more due to its
uninterrupted supply, practicality of access as well as commercial advantages, especially in the

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eastern part of Indonesia which consists of islands where the cheaper energy sources are rarely
available.
Fossil-based primary energy still dominates the power plant industries. In 2017, power plants
recorded using 85% of fossil energy, specifically coals. Some of the newer power plants under
construction, such as the Coal Fired Steam Power Plant Indramayu, have supports from Japan's
Official Development Assistance (ODA). In 2025, electricity-based primary energy is
projected at 102.6 MTOE, with the most substantial portion coming from coal at 59%, followed
by EBT at 27% and gas at 14.1%. Coal’s portion in 2050 is projected to decrease to 52%.
The reality of life is that we still need fossil energy. The current policy of the government to
increase capacity of domestic oil refinery (including expansion and construction of new
refineries) require the reliable continuing supply of crude oil, both through domestic and
through import. Likewise, the State's economy and finance, including fiscal stability and profit-
sharing funds that support regional budgets, are still significantly dependent on fossil energy.
In regards to the facts discussed and the shifting of constellation among the policy of developed
countries, kindly are policy suggestions proposed.
First, the Indonesian Government, together with other countries with similar issues, should
conduct an effective joint dialogue and diplomacy instrument appealing to the developed
countries within the OECD to objectively and cautiously consider country’s conditions on a
case-by-case basis.
Second, systematic, structured and sustainable collaboration with developed countries is
needed to improve technological advancements for the use and utilisation of efficient, clean
and affordable primary energy. Such cooperation will help smooth the transition – not only
shifting to the use of renewable energy, but also to deal with the existing power generation that
needed to replace or refurbish. The ability to pay of user and affordability of consumers is also
of paramount to wisely considered.
Finally, a structured, patterned and integrated policy is crucial to transform the paradigm of
primary energy as a source of income per se. Energy must be smartly used as development
capital engine to the economy, to create the added value of fossil energy by encouraging further
processing and downstream industries. This paradigm should be a mindset in general policy
making on national level when preparing the state budget together with mid terms and long
terms program.

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Therefore, in this sense, as a global citizen, The government and the people of Indonesia
continue to take part on the role and responsibility to protect the climate while strengthening
the country's economic structure based on the value creation of primary energy as feedstock
to downstream industries.
Jakarta, December 2019
Author, Doctoral student of Universitas Pertahanan - Energy Security Concentration