Indonesia is positioning itself at the forefront of the global race towards a low-carbon economy, with a firm belief that sustainable development is key to future prosperity.
Foreign Minister Retno Marsudi emphasized the importance of renewable energy and green investments in her speech at the Indonesia International Sustainability Forum (ISF) 2024 in Jakarta on Friday, September 6, 2024.
Retno emphasized that the country is eager to be part of the global shift towards a low-carbon economy.
Quoting a report from THE UK, Retno highlighted that global investments in the energy sector reached a record US$1.7 trillion (Rp26,261 trillion) in 2023, a 17 percent increase.
A notable driver of this surge was the electric vehicle (EV) sector, which saw investments skyrocket to US$634 billion − nearly five times higher than in 2020.
Additionally, investments in clean energy supply chains are expected to grow from $135 billion to US$259 billion by 2025.
These figures underscore the growing importance of renewable energy as the fuel of the future.
“Energy is no longer just a commodity; it has become a driving force for economic growth,” said Retno.
Despite these advancements, Retno cautioned that progress towards achieving the United Nations’ Sustainable Development Goals (SDGs) is lagging, with less than half of the targets for 2030 met.
“Current levels of energy transition investment are not enough to keep the world on track to achieve net-zero emissions by mid-century,” she added.
Indonesia is focusing on three key priorities in its efforts to foster a low-carbon economy. First, investing in green technology and financing initiatives such as the Just Energy Transition Program (JETP), introduced during the G20 Summit in Bali in 2022.
Second, unlocking the potential of the Blue Economy, which is expected to generate US$1.5 trillion and 30 million jobs annually by promoting sectors like aquaculture and downstream fisheries.
Finally, Indonesia is leveraging its vast tropical rainforests to capture carbon emissions, aiming to maintain the lowest deforestation rate in 20 years.
“With these efforts, we are on the right track towards a sustainable future,” Retno said.
She called on all stakeholders to strengthen collaboration in pursuit of this shared goal of sustainability.
