Bisnis, JAKARTA — To achieve net zero carbon emissions by 2060, the Indonesian government needs to take swift action to partner with domestic and foreign investors, especially as the promised funding from the Just Energy Transition Partnership (JETP) has yet to materialize.
Considering the considerable amount of $87 billion funding Indonesia needs to proceed with the energy transition, certainty of funds is crucial to determine the program's success and build the necessary infrastructure and technology for transitioning into clean energy.
“We need financing for the energy transition, generally from the banking sector. Usually, they engage in business-to-business, but we can also discuss it with the Financial Services Authority if necessary,” said Yudo Dwinanda Priaadi, Director-General of New and Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources (MEMR), on Wednesday (10/11/2023).
Besides the banking sector, Yudo also hopes for financial support from non-banking financial institutions, such as cooperatives and regionally-owned enterprises (BUMD). BUMDs can become a source of funding if there is infrastructure development for energy, such as solar power plants in remote areas or other energy transition projects.