Renewable energy utilisation in Indonesia must continue to be increased

Jakarta - Muslims for Shared Action on Climates Impact (MOSAIC) has stated that the utilisation of renewable energy in Indonesia must continue to be increased, one way being through the construction of community-based solar power plants (PLTS). MOSAIC General Treasurer Hidayat Tri Sutardjo said in Jakarta on Wednesday that solar energy, which has a potential of 207.8 gigawatts, has only been utilised at around 0.07 percent, while geothermal energy stands at just 8.9 percent. Hidayat said that President Prabowo Subianto’s ambition to increase solar power to 100 gigawatts (GW) needs to be supported with a major leap. To that end, MOSAIC, together with several other institutions, continues to strive to support it. One effort is through inter-institutional research and discussions to realise this ambition. Hidayat added that his organisation is even working to build community-based PLTS and is currently seeking funding, particularly from Muslim communities. “We cannot rely solely on large-scale industrial projects. We need to reach the grassroots. This is where the importance of the community-based PLTS concept lies,” he said during a discussion on “The Potential of Islamic Finance for Funding Community-Based PLTS”. He explained why it must be community-based: because when communities own and manage their own energy, economic independence will be created. Furthermore, the energy transition becomes not only an environmental issue but also a tool for social welfare empowerment. These community-based PLTS projects require financing that is more bankable while also having social impact. “The large financing gap opens up space for Islamic finance to emerge as a real solution, through a blended finance scheme that integrates Zakat, Infaq, Alms, and Waqf with instruments such as Cash Waqf Linked Sukuk (CWLS),” he added.