VP candidate Gibran says green energy transition is not cheap

We must no longer be dependent on fossil energy

Vice presidential candidate number 2 Gibran Rakabuming Raka at the second vice presidential debate at JCC Senayan here on Sunday said that the green energy transition is not cheap to implement.

As he responded to criticisms from his two rivals, Muhaimin Iskandar and Mahfud MD, Gibran explained that companies operating in Indonesia are currently not able to transition from fossil energy to low-carbon green energy.

"For example for ongoing commitments, the solar power plant (PLTS) in Cirata which is a result of the cooperation with Masdar from the United Arab Emirates, has incentives," he said.

He pointed out, there are tax holidays, tax allowances, and duty exemptions that are aimed to encourage companies to invest in the green energy transition.

"(Because) this is costly (and) some companies do not have the soft skills and (state electricity firm) PLN's electricity mix must be increased in the future," he explained.

However, Gibran said he and the presidential candidate Prabowo Subianto has always been committed to the energy transition to continue the commitment of the current government led by President Joko Widodo and Vice President Ma'ruf Amin.

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Previously, Muhaimin Iskandar criticized Gibran's answer to the low-carbon development strategy question.

He said a carbon tax could be a strategy, but the government's commitment to energy transition is more important.

Meanwhile, Gibran stressed the importance of imposing a carbon tax as part of just low-carbon development strategies.

"If we talk about carbon issues, of course, we have to talk about carbon taxes, carbon storage, and carbon capture. We must no longer be dependent on fossil energy," he said.

He said there is a need to prioritize green energy such bio-ethanol and bio-avtur.

"B35 and B40 (blend of palm oil-based fuel) have been able to reduce our oil imports," Gibran explained.

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