State electricity company PT PLN and the Government of Indonesia invite the global community to collaborate in energy transition, particularly in its funding efforts. The call was reflected in the Tri Hita Karana – World Economic Forum agenda held in Bali on Sunday, May 19, 2024.
Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan emphasized the Global Blended Finance Alliance (GBFA) as the basis for transformative change and future knowledge to accelerate value creation and investment in key economic sectors, one of which is through the Just Energy Transition Partnership (JETP) scheme.
“The eyes of the world are on Indonesia. So, we must be an example of a just energy transition that truly succeeds in balancing economic development, social justice, and environmental management,” Luhut said.
He added that collaboration is therefore needed to solve the global challenges of energy transition.
“Initiatives such as the JETP need to be supported by strong stakeholder alignment not only on technical, but also relational aspects so that we can use this opportunity to learn together in solving our challenges,” Luhut said.
On the same occasion, Minister of Energy and Mineral Resources Arifin Tasrif said one of the biggest challenges in the current energy transition is financial support.
“To get adequate financial support, there are several initiatives such as JETP, AZEC, IPEF that are currently running, we need further financial support to accelerate the achievement of NZE,” Arifin cited.
He added that the government would always prioritize purchasing power and people’s welfare in carrying out the energy transition.
“We ensure that the clean energy transition program must have positive impact on the society. Cooperation between developed and developing countries must be strengthened to fill the gap, so that no one is left behind,” Arifin said.
On the sidelines of the same agenda, PLN President Director Darmawan Prasodjo said that the electricity company is now not only focusing on providing electricity, but also on establishing a sustainable environment.
“Through energy transition, we must ensure that the next generations have a better future than us. Therefore, we cannot be fragmented, we must unite and collaborate. Collaboration in technology, collaboration in innovation and also collaboration in funding,” Darmawan said.
He also emphasised that PLN is preparing a national electricity plan that is greener than ever. Through this roadmap, PLN will increase the capacity of the New and Renewable Energy (EBT) mix by 75 percent and Gas by 25 percent by 2040. This effort is certainly an opportunity for various parties to collaborate, one of which is through blended finance or funding instruments that combine public financing with private financing to offer lower capital costs.
