Jakarta (WNAM MONITORING): The Indonesian Chamber of Commerce and Industry (Kadin) encourages micro, small, and medium enterprises (MSMEs) to make the transition to clean, environment-friendly energy, as activities of this business sector contribute significantly to greenhouse gas emissions.
Kadin’s Head of the Energy Transition Working Group and Chair of the Permanent Committee for New, Renewable Energy and Energy Conservation, Anthony Utomo, revealed that Indonesia has only utilized around 14 percent of its renewable energy potential.
However, a lot of new and renewable energy potential, especially electricity generation, had yet to be utilized, he noted in a statement on Thursday (Dec 12).
Of Indonesia’s 3,686 gigawatts of renewable energy resources, the country has only utilized 13.7 gigawatts.
According to Utomo, MSMEs are poised to play a pivotal role in driving the future energy transition.
Currently, around 65 million MSMEs in Indonesia contribute up to Rp9,580 trillion, or equivalent to 91 percent of the gross domestic product (GDP), and absorb 97 percent of the total workforce.
“MSMEs have an important role in accelerating the energy transition because they not only support the development of clean energy but also contribute to economic growth and job creation,” he noted.
However, a gap still exists in the energy transition process among MSMEs. So far, many small businesses do not understand business practices based on the principle of sustainability, he pointed out.
Data from the Indonesia Energy Transition Outlook 2024 recorded that greenhouse gas emissions resulting from MSME activities in 2023 reached 216 million tons of CO2.
Based on the data, limited access to funding and education is one of the main challenges hindering MSMEs in transitioning to clean energy.
“Kadin will continue to encourage MSMEs to carry out clean energy transformation through energy efficiency campaigns, the application of appropriate technology, policy and regulatory support, as well as education and training,” Utomo noted.
