Towards a zero-emission country, Indonesia is committed to reducing CO2 emissions by 29% with its efforts and resources. The government is also working to reduce CO2 by up to 41% with international support. One of these efforts is by retiring the Coal-Fired Steam Power Plant (PLTU).
However, the government, through the relevant authorities, is currently developing the roadmap of PLTU closure.
It is hoped that through this roadmap, the energy transition that will be carried out will not disrupt the pace of the domestic economy.
Furthermore, on the second day of the implementation of the Finance Ministers and Central Bank Governors (FMCBG) and the Finance Central Bank Deputies Meeting (FCBD) which took place today, the Government would like to introduce the energy transition funding system in Indonesia.
Special Staff to the Minister of Finance for Fiscal Policy and Macroeconomics Masyita Crystallin explained that Indonesia’s energy transition funding system will be carried out through PT Sarana Multi Infrastruktur (Persero) (PT SMI) and PT Indonesia Infrastructure Finance (IIF).
“Tomorrow’s event will be a soft launching of the country platform, it is a mechanism to carry out the energy transition,” Masyita explained at the Bali Nusa Dua Convention Center Media Taklimat, quoted Thursday (14/7/2022).
Masyita said that SMI was appointed as the country platform manager to provide the government’s fiscal support for funding and financing the energy transition.
The decision of PT SMI as the country manager has been stated in the Decree of the Minister of Finance (KMK) No. 275 of 2022. The country platform serves as the manager or regulator of funding for the energy transition.
“Country platform managers will work together to create various financial instruments, including various loans, development loans, local financing, and even equity financing in the form of ownership,” Masyita explained.
“To make this transition, it must be systematic and slow, taking into account the aspect of justice for consumers, the government, and energy companies so that it is sustainable,” said Masyita.
“In general, we will continue to pay attention to the mix of GDP and the environment, so that we can benefit. Because a lot of global financing is also very difficult to get funding for the energy mix,” Masyita continued.
In the future, Indonesia will have two types of funding for the energy transition, namely SDG Indonesia One to develop new and renewable energy (EBT) and another to cover or reduce the period of coal production.