Indonesia and Australia Strengthen Energy Transition Cooperation through the KINETIK Program

Jakarta, INTI - The governments of Indonesia and Australia continue to strengthen cooperation in the field of energy transition through the Climate, Renewable Energy, and Infrastructure Partnership (KINETIK) program. This program is a follow-up to the Australia-Indonesia Climate and Infrastructure Partnership (CIP) agreement announced by Indonesian President Joko Widodo and Australian Prime Minister Anthony Albanese at the Indonesia-Australia Annual Leaders Meeting in 2022.

The signing of the Exchange of Letters for the Indonesia-Australia Economic Partnership (Prospera) program was carried out by Deputy for International Economic Cooperation Coordination at the Coordinating Ministry for Economic Affairs, Edi Prio Pambudi, and the Australian Ambassador to Indonesia, Penny Williams, on Thursday (07/25) in Jakarta.

"This agreement is a continuation of the economic development collaboration between Indonesia and Australia that has been ongoing for more than two decades and highlights the collaboration between the two countries on energy transition. Both countries are committed to implementing the KINETIK program, which will strengthen the partnership between the two countries, attract more private investment in renewable energy and environmentally friendly industries in Indonesia, and result in various concrete projects for Indonesia," said Deputy Edi.

USD200 Million Grant Support from the Australian Government

The Australian government has allocated a grant of up to USD200 million for the KINETIK program, which will focus on mutually reinforcing pillars. KINETIK encourages increased investment in energy transition by supporting policy and regulatory reforms implemented by Indonesia.

KINETIK opens financing access for small and medium enterprises focused on climate through Australian Development Investments and provides incentives for investment in large-scale green infrastructure projects. KINETIK also promotes an equitable energy transition where women, people with disabilities, and marginalized communities can participate and benefit from the transition to zero carbon emissions.

"Prospera is an essential element in strengthening bilateral relations between Indonesia and Australia. Prospera is not only a symbol of the close cooperation between the two countries but also a solid foundation for more strategic collaboration between government institutions in Indonesia and Australia, especially in the fields of energy transition and climate," explained Ambassador Penny Williams.

Collaboration with Indonesian Government Institutions

With the implementation of one of the pillars of KINETIK, Prospera partners with the State Electricity Company (PLN), the Ministry of Environment and Forestry (KLHK), and the Ministry of Energy and Mineral Resources (KESDM) as beneficiary institutions, totaling 32 institutions. Prospera's support in implementing KINETIK will encourage increased investment in energy transition by supporting policy and regulatory reforms implemented by Indonesia.

The signing of the Exchange of Letters was also accompanied by the Prospera Board Meeting, co-chaired by Deputy Edi and Australian Deputy Ambassador to Indonesia, Gita Kamath, to evaluate the implementation and achievements of Prospera for 2023-2024 and approve the Prospera Activity Work Plan and Budget for 2024-2025.

Prospera Board Meeting and Achievement Evaluation

The meeting was attended by, among others, Assistant Deputy for Economic Cooperation of America and the Pacific, Irwan Sinaga, Minister-Counsellor for Economic, Investment, and Infrastructure of the Australian Embassy, Tim Stapleton, and the Director of Prospera.

The Prospera Board Meeting discussed various program achievements and prepared the work plan for the following year. With full support from both countries, it is expected that the KINETIK program can have a tangible impact in promoting the energy transition and strengthening bilateral cooperation between Indonesia and Australia.

Invitation to Participate in Indonesia Technology and Innovation 2024

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