Minister Urges Green Energy Use to Strengthen Indonesia's Global Market Position

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Jumat, 31 Januari 2025 - 17:00 WIB

Jakarta, VIVA – Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the use of green energy, or renewable energy (EBT), is more suitable for industrial needs rather than household consumption.

This is because green energy is believed to be able to produce products with prices that are more competitive in the global market.

“Green energy is more suitable for financing industries that produce goods, which can then be competitively priced in the global market,” the minister said on Thursday (Jan 30).

He explained that using green energy incurs higher costs compared to fossil energy. Therefore, if green energy is used solely for household consumption, it would lead to increased production costs.

“This would result in over-costs, potentially burdening the people or placing a strain on government subsidies,” the minister remarked.

According to him, the funds allocated for these subsidies could be used for other purposes that are also a priority for the government through various programs.Therefore, the development of renewable energy is indeed better suited to meet industrial needs rather than just household consumption, he added.

Furthermore, Minister Lahadalia acknowledged that gas would be more expensive if used to replace coal in power plants.

Based on his calculations, the economic disparity between electricity tariffs using coal and those using gas could reach trillions of rupiah due to the higher cost of gas.