Jakarta –
Energy transition what the government is promoting is not an easy and cheap program. Considerable funding is needed to build clean and renewable energy.
To facilitate financing, the government will soon launch a program investment plan which will be launched in August 2023. Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu said, Indonesia already has an ETM (Energy Transition Mechanism), the Indonesian Just Energy Transition Partnership (JETP).
“Indonesia will launch soon investment plan in August 2023, as well voluntary carbon market which is planned to be launched before the end of this year,” said Febrio quoted from the Ministry of Energy and Mineral Resources website, Wednesday (28/6/2023).
According to the IRENA Report, to carry out energy transitionASEAN needs US$ 29.4 trillion in financing in 2050, with a maximum temperature increase scenario of 1.5 degrees Celsius, with 100% renewable energy.
The investment is allocated for electricity through the development of solar PV, hydroelectric power, and other renewable energy. Then for network and flexibility through national and international transmission, distribution, and storage.
Furthermore, financing for the supply of biofuels as well as vehicles and electric vehicle battery charging. In addition, it also considers a broader financing perspective, including fuel, operational and maintenance costs.
Acting Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said the Indonesian government is actively working to achieve clean energy goals, including developing a clear concept for Energy Transitions Sustainable Finance, building a long-term renewable energy roadmap, bridging the gap between decisions at the level of actual investment policy and practice, as well as creating clear pathways for regional electrical interconnectivity.
“The energy transition is very specific for each country. Therefore, various sources of energy, technology and financing must be considered to ensure an energy transition that is fair, inclusive, affordable and safe, according to the circumstances of each country,” said Dadan .
Dadan added, strengthening the analysis of clean energy financing and investment from all sources of public and private financing is needed to meet energy access and energy transition goals, as well as identify potential ways of payment that will lower costs of technology adoption.
“We can develop sustainable and inclusive large-scale financing solutions through dialogue and further action between institutional investors, Multilateral Development Banks, other financing institutions, industry, and policy makers to increase collaboration, identify innovative financing options, and enhance approaches which is suitable for financing green energy and energy transition,” he said.
(rrd/ara)
2023-06-28 14:15:43
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