Annual Impact

Report 2019 - 2020

Institute for Essential Services Reform (IESR)
Institute for Essential Services Reform (IESR)

Accelerating
low-carbon
energy transition
in Indonesia

IESR encourage transformation into a flashed energy system by

advocating a public policy that rests on data-driven and scientific
studies, conducting capacity development assistance, and
establishing strategic partnerships with non-governmental actors

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Index

Contents
A Message from Executive Director 04
High Profile Testimonials 06

Accelerating Low-Carbon Energy Transition in Indonesia 08

Working program 09
Key stakeholders influence for change 09
Renewable energy advancement incubator 09

Tapping opportunities into IESR’s program 12

activities and research pipeline

Initiatives 15
Program Highlights 15

Our Portfolio 17
Communications: Productions 18
Facts and science-based 19
IESR 2019 List of Publications 21

Communication/Campaign 24
Listen-Research-Advise-Engage 24
Our social media presence (digital diplomacy) 25

IESR in Numbers 25
News Coverages 25
Events & Activity 25
Publication Distribution 25

Research 26
Influencing Changes in Policy Framework 28
Change in Policy and Regulation 28
Change in Public Perception 29

How are our programs impacted throughout the year 30

Our 2020 and Beyond 34
Financial Report 37
Talent 37

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Welcome

A Message from Executive Director

Dear readers,

It is with great pleasure that the Institute for Essential Services Reform
(IESR) welcomes you to the 2019 (first) edition of our Impact Report.
2019 has seen many highlights, some of which are portrayed in the
following pages.

During 2019, IESR has launched several reports and projects/initiatives

to accelerate low-carbon energy transition in Indonesia within four
main programs of Energy Transformation, Sustainability Energy
Access, Green Economy, and Sustainable Mobility. We know that
many organizations out there commercial and charity organizations

Fabby Tumiwa have ideas on promoting renewable energy on their streamlines, acts,
and tools. Therefore we combine in-depth studies and analyses of
Executive Director policies, regulations, and techno-economic aspects in the energy and
environment sector with the substantial public interest in advocacy
activities to influence policy change at national, sub-national, and
global levels.

We are also happy that the Vice President of Indonesia, Dr. Drs. H.
Muhammad Jusuf Kalla (2014 - 2019) addressed the importance of
energy sovereignty in IESR’s organized event with the Indonesia Clean
Energy Forum (ICEF): at the Geopolitics of Energy Transformation
Seminar.

We combine in-depth studies and analyses of

policies, regulations, and techno-economic aspects
in the energy and environment sector.

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High Profile Testimonials:

Jusuf Kalla Marie Elka P

Vice President of the Republic of Indonesia, 2004 - 2009 | Managing Director of World Bank

Mini Seminar Geopolitik Mini Seminar Geopolitik

Transisi Energi Transisi Energi

“Energy Transformation becomes important to “We have a forum for discussing transformation to
be observed and done together, as policies, as a renewable energy that happens worldwide, that will
business, determine how consumers have to pay it.” change the geopolitical and geoeconomic of the
world. We have to see this as an opportunity for a
“I hope in this mini-seminar that energy country like us towards CO2 emission reduction that
transformation will be our concern, and we should will happen if we convert into renewable energy.”
consider the transformation in what the world needs
to be happening.” 31 July 2019. Bimasena Lounge, Jakarta

31 July 2019. Bimasena Lounge, Jakarta

Prof. Dr. Kuntoro

Prof. Dr. Emil Salim Mangkusubroto
Chairperson, The advisory council to
the President of the Republic Former head of Indonesia Energy
of Indonesia, 2010 - 2014 Transition Dialogue 2019

Brown to Green Report 2019 Indonesia Energy Transition

Dialogue 2019
“A significant factor from Brown to Green is the
energy policy. We have the Brown to Green Economy
“The most important thing is how to transform our
report. Consider this as a yellow light. Brown to Green
mindset and behavior from the past, tthat heavily
report, explained if we are falling behind in matters
rely on coal and gas policies, and shifted to clean
relating to climate change. The main point of our
energy.”
policy is not agreed on CO2 control. Then alternatives
must be sought.”

Pullman Hotel Jakarta

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Annual Impact Report 2019 - 2020
 Rachmat Witoelar
Ganjar Pranowo Presidential envoy for Climate
Governor of Central Java change

Webinar Green Economic Recovery Brown to Green Report 2019

“Saya harap dari seminar (yang diselenggarakan oleh IESR) “The Brown to Green Report is instrumental in
ini bisa membuat rekomendasi arah kebijakan untuk energi understanding, where Indonesia stands in comparison
baru terbarukan, khususnya untuk tenaga surya. Saya akan to other G20 countries and contributes to stimulating
tawarkan, jika rekomendasi kebijakan ini executable, bisa the national debate about climate change and necessary
dieksekusi dengan tidak terlalu banyak kesulitan, saya mau action.”
Jawa Tengah dijadikan laboratorium agar bisa kita dorong
untuk melakukan percepatan ini”

“I sincerely hope IESR can make policy direction

recommendations for renewable energy, especially for
solar power. If the policy recommendation executable, I
will open for Central Java to be a laboratory. So we can
push to accelerate this (green economic recovery)”

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Accelerating Low-Carbon
Energy Transition in
Indonesia

Energy transition is inevitable. The decision we

make now will define our future and our record
in history.

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 In the last three years, IESR has started to introduce,
set, and frame the narrative of the energy transition
towards a low carbon energy system in the nation. As
an Institution, we are independent of any government
and business interests. IESR puts public interests at
the forefront of its works. It operates based on the
principles of democracy, justice, good governance,
and professionalism. We are envisioning building a
world that is better, more sustainable, low-carbon
oriented, and able to provide clean, sustainable
energy for future generations, by encouraging the
acceleration of Indonesia’s energy transition towards
a just, clean, and low-carbon energy system.

To accelerate the narrative and practice of Indonesia’s

power development moves away from fossil fuels,
particularly coal and shifts toward renewable energy
that leads to the decarbonization of the Indonesia
power sector, our Institute must employ innovative
strategies to get the idea into the public policymakers.

Working program

IESR’s vehicles through four main strategic programs: Energy Transformation aiming to increase the number
of renewables, Green Economy aiming to transform Indonesia’s economy move towards the economy that
emits fewer greenhouse gases while maintaining high economic growth, Sustainable Energy Access seeking
to provide high-quality, sustainable energy provision capable of driving productive activities beyond essential
services, and Sustainable Mobility aiming to build solutions for the movement of people, products and services
through a low-carbon, efficient, reliable, and integrated transportation system.

Our core principle in delivering our product is by evidence-based research advocacy. We encourage transformation
into a flashed energy system by advocating a public policy that rests on data-driven and scientific studies,
conducting capacity development assistance, and establishing strategic partnerships with non-governmental
actors.

Key stakeholders influence for change

Regularly we conduct a Multi-stakeholder engagement, engaging Indonesia’s energy sector critical players in a
conversation regarding the power sector’s transformation. This model unlocks efficiency and impacts through a
well-managed discussion of a state-level and industrial policymakers of an intervention or solution drafted as a
suggestion directly to the leader(s) of GoI.

Renewable energy advancement incubator

This is part of IESR strategies designed to assist provincial governments in developing a policy framework and
enabling environment to advance renewable energy deployment. Some of the works cover attracting investment,
bridging investor and renewable energy developers with local governments, and developing business models
(case studies) on renewable energy transformation.

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Tapping opportunities into IESR’s program
activities and research pipeline

Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming of 1.5oC (2018)[1] reported that
limiting global warming to 1.5oC instead of 2oC is imperative to avoid the various catastrophic impacts. This circumstance
means that significant reductions in greenhouse gas (GHG) emissions in all sectors (including the energy) and more
aggressive and immediate transformation are needed. Moving towards ambitious mitigation goals to meet the 1.5-degree
pathway now becomes a global agenda. To align with the agenda, Indonesia shall have more than 50% of its electricity
generated by renewables by 2050 and have defined a pathway to close down coal power plants. This transition scenario
is double than the current target of 31% stipulated in the 2014 National Energy Policy and 2017 National Energy Plan
issued by the President. The recent development in the energy sector focuses on the expansion of thermal power plants,
dominantly coal, which needs to be reserved before 2025 to give larger space for renewables to grow and ensure Indonesia
meets Paris Agreement’s goal.

The current 4D’s trend of decarbonization, decentralization, digitalization, and democratization on today’s energy system
presents opportunities and threats for the country in building a cleaner, securer, and more resilient and cost-effective
power system. In addition to the possibilities, this trend also avoids the risks of stranded assets of existing infrastructure
shortly. These current trends could bring threats to the existing power system if it fails to be adequately addressed. IESR
believes it is economically and technically feasible as the availability of resources in the country are there and the declining
cost of renewables and storage technologies. All technologies that we need to transform our energy system today are
available, however, to deploy these technologies, strong political will, credible, sound policy and regulatory framework, and
investment are strongly needed. We believe that to effectuate energy transformation in Indonesia, bringing and cultivating
innovative ideas and approaches are imperative. Among them are closing the policy gaps to open up the market, promoting
investment, enhancing active public participation in the policy-making process, and amplifying good governance in the
energy sector.

[1] https://www.ipcc.ch/sr15/

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In bringing these changes, there are five critical milestones to happen:

1. Awareness and transparency on the technical, economic, and environmental fundamentals of the cleaner energy &
entire power sector need to increase both among key stakeholders and decision-makers as well as civil societies and
the broader public.Since 2017, IESR has been engaging these stakeholders, providing energy/power advisory based
on our research studies and analysis, and enlarging the circle of energy transition discussion. We have seen that the
support toward rapid renewable energy deployment is strengthened and the commitment of various stakeholders to
support renewable energy.

2. Shift the political and public agenda to focus on the urgency of the energy transition through high-level diplomacy and
broader civic engagement. Shifting the energy investment towards clean energy should be supported by transparent
and clear policy, regulation, and market reform. In 2019, IESR continued the efforts to advance the dialogue with
eminent persons, prominent experts, businesses, and high-level government officials under Indonesia Clean Energy
Forum (ICEF) as well as increase the capacity for civil society groups/coalitions (e.g., Bersihkan Indonesia and Clean
Energy).

3. Drive fundamental and concrete energy policy and regulatory changes implemented by key policy and decision-
makers (e.g., Ministry of Energy and Mineral Resources, Ministry of Finance, and Ministry of Environment). In
2019, IESR continued to drive concrete energy policy and regulatory changes by providing assistance and advice to
various ministries with sound analyses on the policy and regulatory options based on technical work, case studies,
and modeling of different options.

4. Reduce the coal-fired power plants in the medium and long-term and increase the renewables power investment
portfolio, and accordingly revise its Electricity Business Development Plan (RUPTL). IESR carried on the engagement
with PLN to support and demonstrate the feasibility of integrating larger shares of variable renewables energy (VRE) by
showing case studies from international experiences and through dedicated analysis of the Indonesian grid system.

5. More Renewable Energy power producers (IPPs) and private power utilities (PPUs) are in place to support the low
carbon energy transition in Indonesia. IESR resumed the efforts to open up the energy market for private investments
and increase the demand for RE by encouraging large consumers, both multinational and national, to request clean
energy sources, driving the 1 GW solar rooftop program in demonstrating the economic and technical feasibility of
solar PV in the nation.

The activities laid out in IESR’s program activities and research pipeline are matched and are well interconnected. It targets
to change perception and myth-busting around renewables that hamper policymakers to fully support higher renewable
penetration into the power system by developing an appropriate regulatory framework. It will increase awareness of
regulators and policymakers as well energy companies on the risks related to coal power (stranded assets), and future
financial risk related to over-investment of coal plants and related transmission grid for PLN. The other element is to
support civil society campaigns that could increase pressures on policymakers, political parties, energy companies, and
utilities to prioritize renewable energy over coal investment. It will also generate a movement from the bottom through
solar rooftop initiatives that could disrupt the power market and push PLN to become green off-takers .

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The inevitability of Low Carbon Energy Transition
The failing cost of wind and solar power technologies and the declining cost of energy storage have made renewable
energy more cost-competitive in generating electricity to conventional power plants. Their advancement presents severe
threats to the traditional business model of the power industry. As these clean energy technologies become affordable and
easy to deploy as distributed generation, it could disrupt centralize and monopolistic structure of existing power supply
systems, and cause stranded assets that could lead to potential financial catastrophe and a threat to energy security.
Decarbonization of Indonesia’s energy and power sector is imperative to ensure Indonesia meets its climate pledge,
reducing the risk of stranded assets, and ensuring energy security in the long run. It means that renewable energy power
plants must increase significantly, while at some point in the near future, no new coal plant will be constructed. Given
the context, IESR’s five-year plan (2017-2023) mission is to encourage the acceleration of Indonesia’s energy transition
towards a fair, clean, and low-carbon energy system. In delivering the purpose, we crafted four seamless programs: energy
and power system transformation, sustainable energy access, green economy, and sustainable mobility.

The Journey

Over the last three years, IESR has established the narrative of the energy transition to advance the dialogue and discourse
on energy transition-related issues. The works are done by conveying the urgency of energy transition and bringing
together eminent persons, prominent experts, businesses, and high-level government officials. In addition to the narrative
establishment, we also enlarge the circle of energy transition discussion, send a message to stakeholders and concerned
groups, and expose the solar rooftop potential and opportunity to meet renewable energy goals to target stakeholders.

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Initiatives
We, IESR, believe that the opportunities and threats of the energy transition need to be anticipated and addressed
systematically and adequately from the energy and power system perspective to the broader economic system. For this
reason, IESR developed four interlinkages programs to accelerate the country’s low carbon energy transition.

Program Highlights :

Energy and Power System Transformation

The Energy and Power System Transformation program is designed to support Indonesia’s energy
transition process towards low carbon and sustainable energy systems. Our transformation strategy
includes (1) raising the awareness on the feasibility of shifting from coal to renewables among key
policymakers and stakeholders in Indonesia’s energy and power sector; (2) exploiting any opportunity
to expand Indonesia renewable energy market; and (3) working collaboratively with other like-minded
stakeholders, in particular also from civil society organizations.

“In the last two years, PLN has been increasing the share of renewables in its Electricity Business
Development Plan (RUPTL). So did the fine-tuning of key policies and regulations to support renewables
development. However, mediocre renewable energy growth still arguably marks the year of 2019 as
it becomes a political year in the country. We sincerely hope that the newly elected cabinet members
and its configuration can provide supportive political signals and specific action plans to regain clean
energy investor confidence.” Jannata Giwangkara, Program Manager - Energy and Power System
Transformation.

Sustainable Energy Access

The Sustainable Energy Access Program focuses on public policy advocacy works, including research
and public campaign, to promote the universal provision of just, inclusive, and sustainable energy
access in Indonesia; the term access refers to high-quality energy provision, capable of driving
productive activities beyond basic services.

“In 2019, rooftop solar has entered mainstream energy discourse, which is awesome. We have been
working on it since 2016, and seeing how solar energy has progressed throughout the years - it is time
to accelerate its deployment, also with our proposed #SolarArchipelago program as green economic
recovery strategy post-Covid19” Marlistya Citraningrum, Program Manager - Sustainable Energy
Access.

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Green Economy

The Green Economy program aims to transform Indonesia’s economy and move towards an economy
that emits fewer greenhouse gases while maintaining high economic growth. There are three
thematics in this program: fossil fuel transition, energy efficiency, and climate change mitigation.
Therefore, our specific goal for each thematic is: (1) increasing the alertness of the urgency of moving
away from fossil fuel in Indonesia’s energy system; (2) optimizing energy efficiency implementation
that leads to the decarbonization of Indonesia’s energy system; (3) strengthening domestic climate
change mitigation policies.

IESR started to step into coal transition issues in 2018 as we found out that coal contribution in
Indonesia’s primary energy mix is escalating, and also is significantly contributing to Indonesia’s
economy. At the mid of 2019, IESR began communicating the urgency of coal transition to Indonesia’s
President Special Envoy for Climate Change, Coordinating Ministry for Economic Affairs, Ministry
of Energy and Mineral Resources, Ministry of Environment and Forestry. From a climate change
perspective, coal transition has already become public discourse. Nevertheless, the government still
prioritizes coal for powering economic development. As the coal transition is inevitable, we hope the
government and other stakeholders could sit down together and establish a comprehensive plan of
coal transition to accomplish a just transition.” Erina Mursanti, Program Manager - Green Economy

Sustainable Mobility

The program is designed to build solutions for the mobility of people, products, and services through
a low-carbon, efficient, reliable, and integrated transportation system in a low-carbon development
system. Our solutions include identifying and capturing opportunities from potential industrial
disruptions (e.g., vehicle electrification), evaluating the possible impacts of these trends, and tailoring
the design to sustainable mobility strategies for key policy and decision-makers. This program is
currently co-managed by Energy and Power System Transformation & Green Economy Program
Manager.

“The issuance of Presidential Regulation No. 55/2019 has been paving the road to electrifying the heavily
dependent sector in the nation towards a lower-carbon transportation system. Throughout 2019, IESR
has successfully built an electric vehicle (EV) penetration model that serves as a basis in reviewing
the current plant to deploy the EV. Fiscal incentives and aggressive electric charging infrastructure
development are the two most crucial actions to be kicked in 2020 in starting the sustainable mobility
movement.” Jannata Giwangkara, Program Manager - Energy and Power System Transformation.

“Proper distribution and logistic systems influence the country; therefore, some transportation projects
listed on Indonesia's strategic national program. On the other hand, the transport sector contributes
to a third of GHG emissions from Indonesia's energy sector. To gain high economic growth and
minimize GHG increases, the government must integrate a sustainable transport agenda into national
development.” Erina Mursanti, Program Manager - Green Economy

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Our Portfolio
Indonesia Clean Energy Forum (ICEF)
Indonesia Clean Energy Forum (ICEF) is a platform for high-level policymakers and critical players in the energy sector
to engage in a fact-based energy policy debate on the energy transition at the national level. The forum has been grand-
launched on 15 November 2018 by Minister of Energy and Mineral Resources, Ignasius Jonan, in conjunction with the
holding of the first Indonesia Energy Transition Dialogue (IETD) – an annual event of IESR and ICEF.

ICEF members comprise 24 prominent individuals from various backgrounds (i.e., governments, energy companies,
businesses, financial institutions, think tanks, academics, and experts). They are chaired by Prof. Dr. Kuntoro Mangkusubroto,
former Minister of Energy and Mineral Resources and head of Presidential Delivery Unit.

Indonesia Energy Transition Dialogue (IETD)

As part of the Indonesia Clean Energy Forum (ICEF)’s activities, Indonesia Energy Transition Dialogue (IETD) designed to
be an annual event to share ideas and knowledge of energy transition and to build an understanding of energy transition to
extended stakeholders. This event also aims to develop an epistemic community and champion that supports the agenda
of the energy transition towards a low carbon power system in Indonesia. Until the end of 2019, IESR has successfully
convened two IETD events and made IETD advocating on a frontrunner annual dialogue event of the nation’s energy
transition.

Solar Revolution Hub

The platform aims to revolutionize solar development in Indonesia, accelerating its deployment. With the growing trend
of solar deployment globally, IESR predicts that solar energy can be the first mover to boost renewables development
in Indonesia. Since 2016, the platform has focused on advocating solar energy issues specifically and at large, working
closely with policymakers, associations, public, and other relevant stakeholders. IESR is one of 13 declarators for One
Million Rooftop Solar Initiative launched in 2017 and continues to work on mainstreaming solar energy into Indonesia’s
energy landscape, both at national and sub-national levels. Solar Revolution Hub also produces high-quality publications
on solar energy and hosts a solar marketplace called SolarHub.

Energy Delivery Model (EDM)

EDM is a collaboration between CAFOD, IIED, and IESR; aiming to build an understanding of the enabling factors and
barriers to delivering energy services for disadvantaged groups, learning from practitioner experience and research.
The approach is currently piloted in Boafeo, Ende, Flores Island, in cooperation with the Indigenous Peoples Alliance of
the Archipelago (AMAN) and local communities. ‘Energy Delivery Model Toolkit’ was developed to implement the pilot
program. This consists of a six-step participatory design process supported by two innovative tools (the Delivery Model
Map and Canvas). Project/service developers can use the toolkit and end-users not only to design new energy services but
also to review existing projects/services and to inform the more effective design of future energy services.

Strategic Partnership Green and Inclusive Energy

The Partnership is a civil society partnership aiming to meet clean and inclusive energy needs for the community, which
creates economic opportunities, promotes gender justice, and supports climate change mitigation. Within this Partnership,
Institute for Essential Services Reform (IESR) works with Hivos Southeast Asia, Indonesian Consumers Foundation (YLKI),
and Indonesian Women’s Coalition (KPI). Together we work to i ncrease the role of civil society groups in the development
of policies and funding for clean, gender, and socially inclusive energy system in Indonesia; build capacity and knowledge
of civil society groups and communities on clean and inclusive energy issues, and promote decentralized clean energy
policies.

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Fossil Fuel Transition

This initiative is started from the coal transition as coal dominates the energy mix of Indonesia. Some studies related to
coal transition and also both public discussion and bilateral discussion with government officials were conducted. Social,
economic, and environmental perspectives are laid on the ground as we are talking about coal transition in Indonesia. We
increase awareness of the urgency of coal transition to the stakeholders to, ultimately, prepare the coal transition planning
in Indonesia to minimize its risks.

Energy Efficiency

Having completed energy efficiency in industry study in 2018, we pay attention to electronic appliances in 2019 since
electricity contributes the most to the energy consumption in building. Cooling system, among electronic appliances,
has a significant share of electricity consumption, so air conditioners represent by far the most significant potential for
energy efficiency. In 2019, IESR was supporting Berkeley Lab as Indonesia partner in Indonesian Clean Energy Pathways
Program. Here, IESR provides data and analysis to accelerate market transformation on air conditioners.

Climate Change Mitigation

Pushing Indonesia’s government to have more ambitious climate actions is one of the IESR’s missions in accelerating low
carbon energy transition. Working collaboratively with other organizations and think tanks from other G20 countries in an
international partnership - Climate Transparency - we manage and organize several studies and stakeholder engagement.
We would like to enhance understanding/knowledge on Indonesia's performance so that it increase Indonesia’s efforts to
contribute to the Paris Agreement achievement.

Communications: Productions

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Facts and science-based

Throughout 2019, IESR produced analyses and studies that have been used as our basis to advocate the energy transition
agenda in Indonesia. The following list is to name a few from our studies published in 2019.

Study What the study is about

The study investigates the Java-Bali and Sumatra

systems readiness in absorbing more renewable
A Roadmap for Indonesia’s Power Sector:
energy into power grids. The study found that the
How Renewable Energy Can Power Java-Bali and
Java-Bali Sumatra systems can incorporate as high
Sumatra
as 43% of renewable energy into the grids without
compromising the grid reliability and system costs

The study aims to calculate the investment needs

to achieve the oil, gas, and coal production as well
Kebutuhan Investasi Energi di Indonesia. Studi Kasus:
as power infrastructure development targets set
Rencana Umum Energi Nasional (RUEN) [Energy
in RUEN. It is highlighted that the fossil fuel sector
Investment Needs in Indonesia. Case Study: National
requires USD 410-580 billion until 2050, while the
Energy Plan (RUEN)]
power sector needs USD 540 billion of investments up
to 2050.

The study examines the policy instruments used in

India, Mexico, UAE, and Brazil to support the utility-
scale solar PV projects and how the instruments help
Under the Same Sun: A Cross-Country Comparison of
lower down the solar PV costs in those countries. The
Condition and Policy Supports for Utility-Scale Solar
use of reverse auction, attractive financing schemes,
Photovoltaic Projects
and low-interest rates, and large scale projects to
enable bulk procurement are some of the lessons
learned highlighted in this study.

The report highlights the status of clean energy

development in Indonesia in 2019 and projects the
market trend in 2020. The report calls attention to the
slow development of renewable energy in Indonesia,
Indonesia Clean Energy Outlook 2020
with only 385 MW of renewable capacity added
in 2019. The overall investment climate was not
improved from the previous year, with only USD 1.17
billion worth of investment recorded for renewables

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 Study What the study is about

This study analyzes policies and the provision of

Beyond Connections, Meningkatkan Kualitas Akses
energy access in Indonesia which includes access
Energi di Indonesia untuk Pembangunan Manusia yang
to electricity and access to clean cooking fuels.
Berkelanjutan
The study reports the low-quality energy access in
Indonesia, particularly in eastern Indonesia, where
[Beyond Connections, Improving the Quality of
some of the most indigent populations live and the
Energy Access in Indonesia for Sustainable Human
absence of a Multi-Tier Framework in determining the
Development]
access quality in the country.

Given that coal plays a significant role in energy

and in the economy (especially in coal-producer
provinces that are highly dependent on coal sector
contribution). In contrast, global pressures to coal
utilization persist, there is a possibility that coal
Industrial Energy Accelerator: Indonesia Diagnostic
production in Indonesia will be declining. The study
gives insights on the potential impacts of global coal
transition in Indonesia’s coal sector and recommends
a comprehensive regulatory framework across
industries, ministries, and local government.

Coal power plant numbers globally must be reduced

to meet the Paris Agreement target. As this will affect
Indonesia, a fast and measurable response that is
Implikasi Paris Agreement terhadap Masa Depan reflected in the policy and regulation is required for
Pembangkit Listrik Tenaga Uap (PLTU) Batubara di anticipating economic risks and ensuring energy
Indonesia [Paris Agreement Implications to the Future of supply security. The study indicates a potential
Coal in Indonesia] decline in GHG emissions in the power sector can
be reached to meet the Paris Agreement target and
proposes a package of policy and programs that can
be conducted.

The Brown to Green Report is the world’s most

comprehensive annual review of G20 countries’
climate action and their transition to a net-zero
emissions economy. The report features a novel
Brown to Green Report 2019
analysis of climate impacts in G20 countries, their
adaptation plans, and their policies for greening
the financial system. Under Climate Transparency
Partnership, IESR provides the analyses for Indonesia.

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IESR 2019 List of Publications

Proceeding journal: The Ambition Call Study report: Briefing Paper:

Akses energi yang berkelanjutan Indonesia Clean Energy Outlook Apa yang Membuat Biaya
Pembangkitan PLTS Skala
Utilitas Bertambah Murah?

Study report: Executive summary for Brown to Green Report Executive summary report
Brown to Green 2019 policymakers: Indonesia Country Profile Meningkatkan Kualitas Akses
Brown to Green 2019 Energi di Indonesia untuk
Pembangunan Manusia yang
Berkelanjutan.

Bulletin: Energi Bersih Study report : Briefing paper : Dinamika Batu Bara Indonesia
Terbarukan Untuk Kita Semua A Roadmap for Indonesia's Energi Surya untuk Kota
Power Sector

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IESR 2019 List of Publications

Technical Notes: Powering the

Energi Kita Report: Energy Delivery Model
Cities - Technical Potential of Rooftop
Solar for Public and Commercial Energi Surya Untuk Kita
Buildings in Two Metropolitan Cities
in Indonesia

Indonesia Clean Energy Outlook Igniting a Rapid Deployment of Discussion Paper Indonesia Coal Dynamic Full
Renewable Energy in Indonesia Implikasi Paris Agreement Report
terhadap Masa Depan PLTU
Batubara di Indonesia

Indonesia Coal Dynamic - Kebutuhan Investasi Energi di Levelized Cost of Electricity di Levelized Cost of Electricity di
Summary for Policymakers Indonesia Indonesia saat ini – Ringkasan Indonesia saat ini – xecutive
Eksekutif summary

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IESR 2019 List of Publications

Levelized Cost of Electricity Market Potential of Rooftop Memanen Energi Surya Powering the Cities Technical
di Indonesia saat ini – Solar PV in Surabaya Paper
Understanding the Levelized
Coast of electicity Generation

Market Potential of Rooftop Mekanisme Lelang Terbalik Under the Same Sun Technical Note: Residential
Solar PV in Greater Jakarta Rooftop Solar

A Roadmap for Indonesia's

Power Sector

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Communication/Campaign
Listen-Research-Advise-Engage

Bring renewable energy feasible to policymakers --- accessible, available, and affordable for all.

Our Communication Strategy developed to demonstrate how the proposed program, to identify any gaps (awareness)
and meets the information needs, with interest in Renewable Energy sectors, as well as to facilitate the dissemination of
messages in accelerating the low-carbon energy transition, with a narrative approach of:

Bring renewable energy feasible to policymakers, accessible, available, and affordable.

DEFINE EXPLORE

IESR
EVALUATE
Engage STRATEGIZE

Roadmap

ACTIVATE IDEATE

The IESR Engage Roadmap is our approach to meaningfully participating in a connected world, this is how we apply
Public Engagement with Stakeholders, and highlight the steps in which we will define outcomes for our Organization, and
leverage the seven behaviors of Public Engagement by:

Participate in the Conversation

Listen with Intelligence
Build Active Partnership
Champion Open Advocacy
Create and Co-create Content
Embrace and Navigate the Complexity
IESR Engage Roadmap: define, explore,
strategize, ideate, activate, evaluate.
Plus: Promotion & Outreach

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Annual Impact Report 2019 - 2020
Our social media presence (digital diplomacy)

2019 has been the year of our public engagement, with almost 300% of the increase in socials followers and engagement
through IESR owned-media channels (Newsletter subscribers, Social platform, Website visitors and numbers of
Downloaded Publications)

IESR in Numbers

News Coverages

Events & Activity Publication Distribution

3 International Events (IETD, Climate Transparency Throughout 2019, our report studies, briefing papers, and
Workshops ICEO), 27 National/Local Events other publication productions have been downloaded 2,768
times. (In Digital copy)

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Research

Research studies is a weapon to change

perception and myth-busting around
renewables energy.

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Annual Impact Report 2019 - 2020
 Event IETD

Event Geopolitik
Transformasi Energi Evet B2G

IESR had no research group until 2019; our research was conducted by researchers with the supervision of
the program managers instead. Due to the increasing number of research, we established a research group at
the beginning of 2019. While program managers supervise the content, a research coordinator was assigned
to coordinate resources within this group to ensure the research delivered as its timeline. The group consists
of several researchers (including research coordinator) with varied backgrounds, experience, and expertise in
energy and environmental issues.

Our research product that mostly accessible to the public is developed through a detailed-plan process from the
recent motion (proposition) to be established as a publication or paper; from outlining, interviews, modeling, and
expert reviews from both internal and external reviewers, to produces in-depth studies and analyses of policies,
regulations, and techno-economic aspects in the energy and environment sector with strong public interest
advocacy activities to influence policy change at national, sub-national, and global level.

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Our Impacts

Influencing Changes in Policy Framework

1. The provincial government of Bali adopted IESR’s recommendation on incentives for renewable
energy use in their Governor Regulation on Bali Clean Energy Island

2. Introducing Energy Transition Concept to the stakeholders (adopted ideas and discourse in
Indonesia’s higher officials)

3. The importance of energy sovereignty in Indonesia was endorsed by the H.E. Jusuf Kalla, Vice
President of the Republic of Indonesia 2014 - 2019 at IESR’s organized event

4. Gerakan Nasional Sejuta Surya Atap - #1BY20 A Campaign to encourage the National program of
One Gigawatt Installment Solar rooftop in Residential Area throughout Indonesia.

Change in Policy and Regulation

“In terms of policy and regulations, there were some improvements in 2019 that need to be appreciated. However,
some challenges remained, questioning the commitment of the government to accelerating renewable energy
development in Indonesia.” Pamela Simamora, IESR Research Coordinator.

Presidential Regulation No. 55/2019

A new start for Electric Vehicles, a wait for implementing regulations. The regulation was issued in August
2019. The document delineates several critical points in accelerating battery electric vehicle development in
Indonesia. It gives the notion of support to all related stakeholders via several methods (mainly fiscal and non-
fiscal incentives), it shows concerns to protect local industry in entering the era of EV with steep local content
requirement (increasing gradually until 2026 onward).

MEMR Regulation No. 13 and 16/2019: Better terms for rooftop solar PV

this regulation shows support for small scale (< 500 kWp) rooftop PV users as they will no longer need to
obtain Operating License (Izin Operasi/IO) and Operational Feasibility Certificate (Sertifikat Laik Operasi/SLO).
This will ease the administration process and extra costs. Reg. No. 16/2019 will allow industrial consumers to
generate and use their solar energy with significantly less cost because the capacity charge is reduced from
40 hours to only 5 hours per month, and the emergency charge is no longer applied.

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Annual Impact Report 2019 - 2020
 Event ICEO

Change in Public Perception

IESR assigned a Strategic Intelligence Company that provided us with intelligence insights on how
our works, resources and/or studies perceived in the newsroom from the top ten Indonesia’s media
producers (media company). By 2019, there’s been an increase of two times news coverage, mostly
in online mainstream media distributed with IESR as the newsmaker compared to the previous year.

The term energy transition is becoming more popular and adopted by policymakers. This topic
was consistently covered in the media with a variety of discussions in energy access, Indonesia’s
renewable energy potential, solar rooftop development, coal transitioning, and electricity policy
(tariffs and pricing). However, the practical issue of its implementation remains a challenge.

IESR often builds narratives about Indonesia’s readiness to develop renewable energy and in
comparison to other countries. The discourse opens the conversation and shapes the public’s
perception, as mostly covered that dominates news coverage in Indonesia throughout 2019.

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How are our programs impacted
throughout the year

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Annual Impact Report 2019 - 2020
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How are our programs impacted
throughout the year

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Annual Impact Report 2019 - 2020
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Our 2020 and Beyond

2020 is a critical point to achieve 23% of the renewable

energy mix in Indonesia. IESR widens its work scope
within the energy system, decarbonization, and
reduction of emissions and power advisory.

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Annual Impact Report 2019 - 2020
As the energy transition discourse is now becoming more popular in Indonesia, we are determined to extend our
work in the level of practice, by widening the scope of our work within the energy system, decarbonization, and
reduction of emissions and power advisory including but not limited to finance schemes and local government
engagement. We are aligning our objective with the relevant laws that incorporate health and environment (to
avoid hazardous impacts of fossil energy).

Momentum 2020
The year 2020 is becoming critical towards achieving 23% or the renewable energy mix in Indonesia

Inducing our program activities within the strategic planning of both central & local government

Roadmap - in general, is imperative.

Level up the role of ICEF as a high trust group to directly influence policy agenda and agenda-setting.

Enhance the energy/power advisory services to both improve policy & regulatory framework for clean
energy investment by providing direct technical assistance to government institutions (e.g., MEMR, Min
of National Development/Bappenas) and to PLN. Our works focus on reforming the PPA regime and
support the establishment of de-risking instruments for renewables. Part of IESR’s work also provides
an analysis of the content of upcoming renewable energy law from techno-economic analysis, among
others but not limited to RPS/RPO, carbon price instrument and REC and de-risking mechanism for
renewable energy projects.

Empower and foster the solar revolution and clean energy hubs to both achieve substantial solar PV
rooftop installations and RE initiatives, pledges, and investments. In this third-year project, the solar
revolution hub specifically aims to strengthen the implementation of the ‘One Million Solar Rooftop
Initiative’ (OMSRI) in public and commercial buildings, households, and industries, including developing
a feasibility study of utility-scale solar projects in the nation. Through the clean energy hub, IESR will
resume empowering civic campaigns on energy by building and strengthening the knowledge and
understanding of clean energy and energy transition for civil society organizations (CSOs), millennials,
public leaders, and journalists at the national and local levels.

Clean Energy Resources Hub Providing seamless information and technical support for stakeholders

Solarlab.id A service provider and user-oriented platform - Indonesia’s Solar energy development Information
and data center.

Transisienergi.id Indonesia’s energy transition hub connecting the media, CSOs, and general public accessing
curated and reliable information of publications, data, and energy transition-related in a collaborative way.

Enhancing the role of local governments to start “energy transition from the local” by providing
technical assistance to support the implementation of provincial clean energy plans and develop
regional renewable investment frameworks. In 2020/2021, IESR will assist the Provincial Government
of Central Java on implementation, and scale-up #JatengSolarRevolution, a joint initiative by IESR and
the Government of Central Java launched last year. IESR also will assist the Provincial Government of
Bali in the implementation of Governor Regulation of Bali Clean Energy, with a focus on the acceleration
of solar PV deployment in the tourism sector and public buildings. We are also seeking to assist the
Province of Jambi in building up renewable project pipelines and provincial regulations to support
renewable energy deployment in the province.

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Program highlights

Deploying CASE Project

A large alliance of partners is forming to support Southeast Asia in its transitional move to a clean, affordable, and secure
energy supply system. IESR is a proud alliance of this Clean, Affordable, and Secure Energy for Southeast Asia, as the
National Implementation Partner Indonesia, Research, Action, and Communications.

Potential risk in 2020

We identified some significant risks which may hinder the plan to become successful, as well as ways of mitigating these:

Economic slowdown. The growth of energy demands in emerging economies like Indonesia depends on economic growth.
The global economic downturn could influence domestic financial performance that leads to lower demand for electricity.
This situation could make lower demand for a new generation and might lower
capacity of power from renewables as PLN’s have been building 29 GW of coal power plants up to 2028. This situation
could affect a lower appetite for investment in renewable energy.

The current account deficit impacts the energy policy-making process. As the energy sector is still perceived as a
commodity to balance the current account deficit, the government pushes the industry to optimize the coal resources
utilization and uptake (e.g., domestic coal capping price, coal gasification, coal liquefaction). A combination of proposing
alternative solutions from clean energy and strong push back from the anti-coal movement is among the mitigation
actions to mitigate this risk

A mismatch between new/revised policies and regulations with its needs and objectives. To date, both the government
and legislature are working towards new policy/regulation (e.g., omnibus bill, new and renewable energy bill), which will
be released to regulate further it’s superior and/or subordinate. On the other hand, the government is also revising the
previous regulations (e.g., renewable electricity tariffs and arrangements), which aim to improve the enabling environment
for clean energy development in the country. The new/revised policy and regulation might also become the status quo
(and even worse) if not addressing the needs and objectives, leading to losing the opportunity in tapping the clean energy
investment and opportunity. To mitigate this risk, IESR will continue to work closely with the policymakers and deliver the
technical and advisory services which favor the acceleration of the low carbon energy transition.

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IESR encourages transformation into a flashed
energy system by advocating a public policy that rely
on data-driven and scientific studies.

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Annual Impact Report 2019 - 2020
Financial Report
The trust of our partners is vital for IESR. As a non-profit organization, IESR receives grants through various philanthropic
institutions and project submissions. We channeled all the funds to achieve IESR’s mission in accelerating the low carbon
energy transition in Indonesia. Every year IESR is independently examined by professional auditors to maintain our
credibility and accountability in managing the funds.

In 2019, we managed a total revenue of US$ 808,458.72 More than 50% of IESR revenues were received from our main
three programs, namely Energy and Power System Transformation (with total revenue of US$ 387,137.70), Sustainable
Energy Access (with total revenue of US$ 219,456.25), and Green Economy (with total revenue of US$ 124,664.10). These
three programs expended the same amount of each revenue, except for the General and Administrative Program, which
had a margin of US$ 54,874.68 (or about 6.8%) from the revenues.

Growth in human resources, diversity, and inclusive policy. People culture at IESR

As for human resources, by mid-2019, we have a total of 18 employees on board. IESR continues to
advance the gender equality policy, which leads us to have a share of female workers of 44%. We
rely on our work from research and analysis; therefore, we have one doctorate holder and as many
as eight master’s degree holders on board, all graduated from distinguished universities around the
globe to enhance our credibility. Almost all our employees are in very productive age, with 42% of
IESR Annual Impact Report 2019

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IESR Annual Impact Report 2019
Institute for Essential Services Reform (IESR)

Fostering Energy System

Transformation (energy
transition) in Indonesia, and
economic transformation
based on low (net-zero) carbon
emissions

www.iesr.or.id