Minister of Finance Sri Mulyani Indrawati reveals that Indonesia is exploring cooperation with the EU Commission to promote energy transition and opportunity for carbon trading with the European Union.
Sri Mulyani Indrawati conveyed the issue during a meeting with EU Commissioner responsible for Climate Action, Wopke Hoekstra, in Washington D.C., the United States.
“The issues of climate change mitigation, including the transition to renewable energy, remain hot topics in various global forums. The topics of energy transition, climate change, and carbon trading filled our discussions,” Sri Mulyani in her statement in Jakarta on Monday, April 22, 2024.
The Finance Minister also expressed appreciation to the European Union for its financial support in the Just Energy Transition Partnership (JETP) in Indonesia.
She revealed that various priority projects under JETP had been prepared, including the development of electricity transmission and distribution networks, hydroelectric power plants (PLTA), geothermal, bioenergy, solar panels, and wind power plants.
“We also exchanged ideas on various collaboration opportunities in carbon trading. Indonesia has significant potential as a global carbon credit supplier, with emission reductions of up to 1.3 gigatons of CO2e, estimated at a value of US$190 billion,” she said.
She expressed hope for support from the European Union through investments from its member countries to accelerate the process of energy transition, making it faster, fairer, and more affordable.
Amidst the series of events, the Finance Minister explored the potential investment of the European Investment Bank (EIB) in green and sustainable financing in Indonesia.
The EIB, as a European Union financial institution, expressed interest in exploring collaboration with the Indonesian government. Several pipeline projects have been initiated, including the development of public transportation, urban development projects, and improvements in healthcare facilities.
