Indonesian Political, Business & Finance News

Right Land, Accelerated Energy Transition

| Source: DETIK Translated from Indonesian | Energy
Right Land, Accelerated Energy Transition
Image: DETIK

The government continues to push the energy transition from fossil fuels to new and renewable energy (EBT) to achieve the net zero emission target by 2060. To realise this, the President is promoting the construction of 100 gigawatts (GW) of solar power plants (PLTS) as a strategic step to safeguard Indonesia’s energy security. This target is being pursued in response to rising national energy demand amid global geopolitical turmoil.

To achieve this target, the Institute for Essential Services Reform (IESR) has revealed that beyond procurement mechanisms, the main challenge for PLTS development is land acquisition. This aligns with research by Ernst & Young (EY) which found that major obstacles to energy transition projects in Indonesia include difficulties in land acquisition and complex licensing processes.

Land acquisition has become increasingly complicated as demand for land and space grows. Implementation on the ground is often hampered by disagreements over compensation values, rejection by landowners, and horizontal conflicts that stall project execution. A concrete example occurred on Rempang Island, where a planned PLTS project threatened 16 traditional villages and would have forced the relocation of approximately 7,500 residents. This situation sparked real social unrest due to community resistance.

Consequently, the issue of land provision for energy transition projects must be carefully considered to avoid creating ‘haphazard’ projects that end up abandoned. Examples include a PLTS in Banjar Yeh Mampeh, Kintamani, Bali, which was damaged by flooding, and another in Bulango Ulu, Gorontalo, which was abandoned because it was built in an isolated area with difficult road access.

Beyond physical land factors, social aspects cannot be ignored. In Sumenep, East Java, plans for a PLTS faced strong rejection because the targeted land was a productive area that served as the livelihood for thousands of farmers. These facts clearly illustrate that the land procurement process must consider social aspects, not just administrative formalities. This situation has driven the need for breakthroughs to ensure that land used for energy transition projects like PLTS is truly appropriate.

Land that is suitable is the foundation for accelerating Indonesia’s energy security. Therefore, energy project development must be directed to locations that are genuinely appropriate to avoid future problems, whether biophysical, ecological, or social. One approach that can be used is the Land-Use Conflict Identification Strategy (LUCIS), a method developed by Margaret Carr and Paul Zwick from the University of Florida. LUCIS is an analytical approach to land suitability that aims to identify the most appropriate land and space uses by integrating Geographic Information Systems (GIS), physical characteristics of the region, and social conditions on the ground.

The importance of land suitability for energy transition projects aligns with a study by Richard Burdett, who researched PLTS developers in the United States. He identified several key land requirements to support the energy transition, including a minimum area of 10 hectares, clean and flat land conditions, adequate infrastructure and access support, attention to local policies including socio-cultural factors, and avoidance of flood-prone areas.

The target of building 100 GW of PLTS cannot be optimally achieved by merely using available land without adequate study. Poor site selection risks triggering social conflict, spatial planning mismatches, and budget inefficiencies. In this context, LUCIS plays a role in ensuring solar energy development is carried out on appropriate land, in line with its designation, and with minimal conflict.

The government, through the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), has identified potential land for PLTS development, particularly from expired land rights or abandoned land. Initial identification has found a potential 24,000 hectares. However, this potential is not yet entirely ‘clear and clean’ and requires more in-depth study.

Using the LUCIS method, land provision for PLTS construction would follow these stages: First, mature planning of PLTS projects across Indonesia. Second, based on the initial land potential identification, the government collects cross-sectoral numerical and spatial data, such as physical land conditions, environmental suitability, infrastructure, and alignment with spatial plans. Third, this data is processed to create a land suitability map to determine the feasibility of PLTS construction. Fourth, the government involves local communities to ensure the study results match real conditions on the ground. Fifth, from this entire process, potential land-use conflicts can be identified, allowing mitigation measures to be taken as early as possible. Ultimately, the available land potential is not used entirely as is, but is sorted through a careful assessment process until land that is truly appropriate, feasible, and has minimal conflict risk is obtained. This method has already been applied in other countries, such as in Cochise County, Arizona, United States, to determine locations for new and renewable energy development (solar, wind, and bioenergy) that are environmentally and socially friendly.

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