Indonesia Needs US$ 1 Trillion to Become a Green Country

Indonesia Needs US$ 1 Trillion to Become a Green Country

Indonesia’s dream to achieve net zero emissions by 2060 requires a big struggle. This is because Indonesia is predicted to need funds of up to US$ 1 trillion or Rp. 15,387 trillion for investment in the Renewable Energy sector.

The need for these funds is predicted to increase in line with the government’s plan to early retire the Coal-based Steam Power Plant (PLTU).

This figure was stated by the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif. He said the energy transition financing will increase further because the coal-fired power plant pension fund requires repaying loans and interest to developers.

“Financing for the energy transition is increasing because we will implement early retirement of coal-fired power plants which require large costs to repay loans and interest to developers,” Arifin continued, in a written release received, Friday (14/10/2022).

With huge costs likely to increase, Minister Arifin invites investors, institutions, and industry to increase collaboration to support this energy transition.

“We invite investors, financial institutions, industry, and policymakers to increase collaboration to support the energy transition to achieve Net Zero Emission by 2060,” said Minister Arifin Tasrif.

In addition, the government is also preparing social protection measures in the context of the industrial transition from the cessation of coal-fired power plants to NRE.

One of them is by providing training for affected workers so that they can prepare for the transition from the mining industry to renewable energy.

“We also need additional funds to provide training to mining sector workers so that they can switch to clean and renewable energy,” concluded Arifin.

For information, Indonesia has established an Energy Transition Road Map to achieve NZE by 2060. This roadmap aims to achieve more than 700 GW of Renewable Energy in the energy mix from solar, hydro, geothermal, as well as hydrogen and nuclear.

Furthermore, the Director of Lingkar Pemuda Nusantara Mufti Azmi Miladi said that the ‘Electrifying Lifestyle’ in Indonesia needs to be socialized to create an environmentally friendly life.

This was conveyed in a Webinar with the title ‘Electrifying Lifestyle in the Perspective of Public Services in the Electricity Sector.

“We hold this activity to introduce a modern all-electric lifestyle to the community, as well as support the government’s program to achieve Net Zero Emission in 2060,” said Mufti, Thursday (13/10/2022).

According to him, optimization can be done by socializing the transformation of energy from fossil energy to electrical energy into a lifestyle in society.