East Java Province, being the primary electricity exporter to Java-Bali, demonstrates significant potential in the adoption of renewable energy. Until 2023, the East Java Provincial Government has the responsibility to pursue an 8% renewable energy of energy mix target in the next two years. Additionally, the fact that six cities/districts still rely on Blok Cepu Oil and Gas Revenue Sharing Funds (Dana Bagi Hasil, DBH) with an APBD (Regional Revenue and Expenditure Budget) percentage of 5-29% underscores the crucial need for East Java to diversify its economy, especially through the development of clean energy technology startup ecosystem.
The landscape of the cleantech startup ecosystem in East Java is intriguing due to the presence of several State-Owned Universities with Legal Entity (PTN-BH), that supports the commercialization of research through their holding company. However, this potential has not been fully utilized, especially by the government, which has yet to adopt clean energy technology through collaboration with local cleantech startups. Recognizing this, the development of the cleantech startup ecosystem becomes pivotal in accelerating the energy transition in East Java.
This policy brief serves as a response and analysis of the challenges faced by the East Java Provincial Government in achieving the energy transition target. The brief provides policy recommendations and collaborative initiatives designed to engage all stakeholders in the cleantech startup ecosystem of East Java. This encouragement is expected to create an environment that supports, expedites energy transition, and promotes sustainable economic growth in East Java Province.