Bali, The Indonesia Post – The Coordinating Minister for Maritime Affairs and Investment (Menkomarves) Luhut Binsar Pandjaitan said the US$20 billion investment received by Indonesia would be used to create a sustainable economy for future generations.
“We must not sacrifice economic development, but we must also build a more sustainable economy for future generations,” he said at a press conference themed “Just Transition Energy Partnership” in Nusa Dua, Bali, Tuesday.
United States President Joe Biden at the G20 Summit (Summit) in Nusa Dua, Bali, Tuesday, announced that the US, Japan, World Bank, Asian Development Bank (ADB), and Climate Investment Funds will invest US$20 billion for the energy transition Indonesia.
The funding comes through the Just Energy Transition Partnership (JETP) program in order to achieve net zero emissions (NZE) in Indonesia and the program will be mobilized by PT Sarana Multi Infrastructure (SMI).
“This important partnership supports Indonesia’s targets including mobilizing US$20 billion in initial public and private financing over the next three to five years,” Luhut said.
Luhut explained that as the largest anthropological country in the world, Indonesia has an important role to play in avoiding the worst impacts of climate change on the country, society and the environment.
“Indonesia has committed to a low-carbon economy where the energy transition is key,” he said.
He explained that this investment will be used to reduce carbon emissions, develop renewable energy, and maximize knowledge transfer for technology development.
According to him, the energy transition can also help create new jobs that are environmentally friendly and benefit people who are directly or indirectly affected by climate change.
He ensured that within six months the Government of Indonesia would lead the preparation of a partnership action plan to produce a comprehensive investment regarding the energy transition.
“We have to think about how the energy transition will impact vulnerable communities and achieve net zero emissions,” said Luhut.
Climate Counselor to The Secretary at US Department of The Teasury John Morton stated that for the next six months his party would work with Indonesia to develop a comprehensive investment plan.
These efforts are made to achieve the emission reduction target seven years earlier than the previous schedule and to develop renewable energy.
Not only that, this effort is also being made to help Indonesia reduce carbon emissions in the electricity sector 10 years faster, from 2060 to 2050. “That is the ambition we want to support,” said Morton. (mhn/bbs)
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