The government, through the State Electricity Company (PLN), invites G20 countries to collaborate with Indonesia in reducing carbon emissions. This step is to achieve Indonesia’s target, zero emissions 2060.
The President Director of PLN, Darmawan Prasodjo, explained that PLN showed a commitment to achieving the Net Zero Emission target by 2060 with various programs.
Currently, PLN has implemented an energy transition by building new renewable energy plants. Meanwhile, PLN is gradually retiring coal-based power plants.
In the PLN 2021-2030 Electricity Supply Business Plan (RUPTL), PLN will build a New Renewable Energy (EBT) plant of 51.6% of the target for adding new plants.
“We are aware that this is not enough. PLN also admits that it cannot do all of this alone. Therefore, the solution is to collaborate together,” said Darmawan, quoted from an official statement, Thursday (14/7/2022).
He emphasized that PLN needed support through low-interest financing, policy frameworks, and project collaboration. PLN requires an investment of up to US$ 500 billion to be able to run the energy transition project.
“Because all of our efforts will also have a direct impact on the world. For example, the carbon emissions produced in Bali will also have an impact on Europe and Japan. So our efforts to reduce emissions that will have a direct impact on the world need support,” he said.
Meanwhile, the Director General of Financing and Risk Management of the Ministry of Finance (Kemenkeu) Luky Alfirman explained that PLN is a major player in carrying out the energy transition in Indonesia.
Various efforts to reduce carbon emissions have been carried out, ranging from reducing emissions from the power generation sector to encouraging people to be actively involved in the use of electricity-based energy in their daily lives.
“PLN is one of the key players in the energy transition. PLN needs collaboration support from all parties so that the planned energy transition program can run well,” he said.
Luky explained that the Indonesian government is very open to clean energy cooperation schemes to achieve global emission reduction targets. Indonesia encourages the existence of a blended finance scheme that is able to become a win-win solution in terms of investment.
“Blended Finance is one way to provide a funding solution for the energy transition. I am sure that all countries want to achieve this goal. Therefore, cooperation is needed to achieve this,” said Luky.
Blended finance is intended to find the optimal financing scheme by combining several sources of funding or financing in one project such as the government budget, private parties, and donors.
On the other hand, the Asian Development Bank (ADB) also invites all parties to be able to assist Indonesia in achieving this carbon emission reduction target. ADB’s Vice President for East Asia, Ahmed Saeed, admitted that his party had been collaborating with Indonesia on clean energy projects.
According to him, this commitment is realized in the financing of PLN’s electricity project of US$ 600 million which was agreed upon in May 2022. The financing is used by PLN to strengthen the transmission network in Indonesia and the construction of EBT-based power plants.
Previously, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, emphasized that the world should not doubt Indonesia’s commitment to reducing global emissions. However, these efforts need the support of other countries to be able to achieve this.
“We need concrete collaboration. Not only cooperation in terms of funding but also sharing technology and investment to create jobs, all of which are in line with global aspirations in reducing emissions,” said Luhut.