Indonesia has invited Scandinavian countries of Denmark, Finland, Norway and Sweden to invest in the new renewable energy sector in the country through the Indonesia-Nordic Energy Investment Day: Collaboration to Achieve Net Zero Emission Target. This is part of the Bali Compact G20 2022, where the host country sees that forging international partners is critical in the energy transition process, supports new economies and increases investment in net zero energy systems.
The Ministry of Energy and Mineral Resources Secretary General Rida Mulyana said that the event was closely related to Indonesia’s commitment in the next four decades. Indonesia will produce 580 gigawatts (GW) of electrical energy from solar energy, hydro, geothermal, marine energy from hydrogen and fossil energy from oil and gas.
Up to today, Indonesia is still using a strategy to reduce fossil energy, namely, by converting fossil energy or coal energy into cleaner energy by minimizing the use of coal-fired steam power plant (PLTU).
Mulyana said the development of this investment required a large number of funds of around US$25-$30 billion and must be achieved by mid-2030.
On December 8, 2022, Indonesia’s energy ministry and Denmark collaborated to accelerate the energy transition at the event. In this global change, Indonesia brought the issue of energy transition as one of the three points of discussion at that time.
Apart from that, Indonesia and Finland also signed a Memorandum of Understanding (MoU) on clean, efficient and renewable energy. Meanwhile, Indonesia and Sweden set up a working team on renewable energy projects and bilateral consultations.
“We also have an energy partnership with Denmark called the Indonesia-Denmark Energy Partnership Programme (INDODEPP). We also have a capacity-building program and geothermal potential initiatives with Iceland,” Mulyana said.
“This event is a follow-up to the [energy] minister’s visit to the Nordic countries. How do we follow up with real implementation and cooperation, especially in the field of new and renewable energy,” said Agung Pribadi, Head of the Bureau of Communication, Public Information Services and Cooperation, Ministry of Energy and Mineral Resources.
Pribadi added that Nordic countries would help develop and utilize new renewable energy in Indonesia.