Nandito Putra, Jakarta – Indonesia Corruption Watch (ICW) labels the energy transition and renewable energy power projects as corruption-prone. The more extensive the implementations are, the greater the potential for corruption in new and renewable energy plants.

The coordinator of the Research and Advocacy Division of ICW, Egy Primayogha, mentions that the energy transition business is vulnerable to the practice of state capture. This term refers to the hijacking of policy processes by political actors, businesses, or public officials for personal or group interests.

"Various aspects of the energy transition process are vulnerable to corruption," Egy said on Monday, July 28, giving an example of phasing out coal-fired power plants. Corruption may occur to expedite or even avoid the early retirement of the power plant, as foreign aid is expected to be received.

State capture-based corruption, he said, could occur through manipulation of policymaking and planning as well as deviations at the implementation stage. To push through particular interests, these actors can even weaken institutions such as the Corruption Eradication Commission (KPK), the police, public prosecutors, media, and civil society.

Egy also underscores the imbalance in focus within the energy transition agenda. According to him, the attention is solely centered on electric vehicles, while other sectors such as industrial coal-fired power plants or captive power plants are being neglected. "However, these sectors have significantly high emissions and are vulnerable to corruption," he said.

Nevertheless, the corruption patterns in this sector are not much different from the others. From a legal perspective, the Corruption Law can still cover corrupt practices in energy transition projects. "But ineffective law enforcement will make way for corrupt practices to continue," he said.

Egy emphasizes that energy transition is not limited to power generation. He warns that the energy transition narrative also encompasses other sectors such as critical mineral mining. "All of this occurs in the context of natural resource exploitation and, in this matter, is closely related to the energy transition process," he said.

Source: https://en.tempo.co/read/2033497/energy-transition-projects-are-susceptible-to-corruption-icw-claim