Solar-Powered Solutions for Indonesia
To strengthen its commitment to supporting Indonesia’s new and renewable energy sector, Indika Energy launched an integrated solar power company in partnership with India’s leading solar developer, Fourth Partner Energy (4PEL).
This joint venture, Empat Mitra Indika Tenaga Surya (EMITS), is a manifestation of our commitment to diversify our business portfolios, achieve sustainability goals, improve our ESG performance, as well as support the Indonesian government’s efforts to achieve its renewable energy mix target of 23% by 2025.
The EMITS joint venture can increase investment in renewable energy infrastructure, usher in technological innovations that are more reliable, efficient, affordable and environmentally friendly, as well as create jobs and support efforts to kick-start the economy from the impact of the COVID-19 pandemic.
According to data from the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM), green energy sources accounted for 11.51%, or around 10,467 MW, of Indonesia’s total energy consumption at the end of 2020. While this represents an increase of 2.3% compared to 2019’s figure, it falls short of the Ministry’s 13% goal for 2020. The Ministry of Energy and Mineral Resources projects that another US$ 36.95 billion in green energy investments will be required to achieve Indonesia’s target of 23% green energy usage by 2025. The EMITS venture expects to bring at least US$ 500 million to Indonesia during this period.
EMITS is gearing up to play a vital role in enabling this green energy transition through a simple value proposition to the consumer: cleaner electricity at lower rates than grid tariffs, which will help meet sustainability goals. For Indika Energy, EMITS will contribute to the company’s commitment to increase the non-coal portion of its revenue to 50% by 2025.
Indonesia has huge potential in the renewable energy sector, and our consumers are increasingly demanding green energy solutions. Indika Energy, as part of its overall pivot toward sustainability businesses, is committed to answering that call.