Minister of Energy and Mineral Resources, Arifin Tasrif, has invited his counterparts at the B20 Forum to participate in Indonesia’s energy transition. “Let us build a collaboration among ourselves and keep communicating so we know what we are trying to accomplish and what opportunities we can share,” he told investors attending the event at the Bali Nusa Dua Convention Center on November 13, 2022.
The B20 Forum is one of the most prominent engagement groups within the G20 Forum. The event is famous for providing a forum for dialogue among global business community members. The event has 1,000 delegations, both from G20 members and non-members. The majority of them are executives of multinational corporations.
In his remarks, Tasrif said Indonesia has been blessed with a wide variety of energy resources. He emphasized that the country plans to build a 500 GW electricity capacity by 2060. He said the country was estimated to have a renewable energy potential of 20,000 GW.
Wide opportunities are on offer
Indonesia, however, requires the availability of technology, a supporting industry for this type of technology and sufficient financing.
“We also have other materials, such as minerals, which can assist with the transition process. This time, we ask for your cooperation and collaboration from various business sectors on how we process these minerals and how our country can create more jobs and add value. We are sharing this product with the global market,” Tasrif added.
The government must develop a sound policy as part of the transition process. The government has adopted an excellent approach to attract more investment to Indonesia. According to Tasrif, Indonesia plans to build 22 GW of renewable energy power projects within the next 10 years with an investment of around US$ 50 billion.
“This is a new opportunity for the business community to participate,” he said.
Additionally, the country must develop its transmission system over a long period. Indonesia is one of the largest archipelago countries in the world that should be connected to the energy grid. “We have the energy ourselves, but we need to utilize our resources, and then we will need to cooperate with you, the business community,” Tasrif added.
G20 energy ministerial agreement
According to Tasrif, the G20 energy ministers have agreed on nine basic principles concerning the energy transition. These include, among others:
- how countries can ensure the transition process through the use of efficient energy and renewable energy
- financial resources
- available technology
- research and development
- financing.
G20 members have set a goal of achieving net zero emissions. Obviously, Indonesia requires assistance to achieve this target, as it is a huge demand to be fulfilled quickly. Business community participation is essential to the success of the country. “Technology plays an influential role. Only 50% of the technology available today is being utilized,” Tasrif stated.
A substantial amount of budget is required to carry out the transition. According to the International Renewable Energy Agency, global investments in renewable energy will cost US$ 131 trillion by 2050. “This amount must be collected among the financial resources, the financial institutions, and distributed to developing and less developed countries,” Tasrif concluded.
