Jakarta, INTI – At the Indonesia International Sustainability Forum 2024, Coordinating Minister for Maritime Affairs, Luhut B. Pandjaitan, stated that Indonesia's energy transition efforts are not just focused on reducing emissions but must also positively impact economic growth. During the plenary session themed Future of Energy Transition in Emerging Economies at the Jakarta Convention Center, Luhut emphasized that this process must be fair without sacrificing vital sectors.
"Energy transition must address economic growth, ensure energy security, and tackle climate change effectively without sacrificing these critical aspects," Luhut said in his speech.
Global Partnerships and Renewable Energy Project Development
Indonesia has formed a National Energy Transition Task Force to drive various energy transition initiatives. One of the key steps is through the Just Energy Transition Partnership (JETP), in collaboration with the International Partners Group (IPG) and the Glasgow Financial Alliance for Net Zero (GFANZ). Through this partnership, Indonesia has identified over 400 priority projects in the electricity sector that are ready for funding.
"We need collaboration and investment to ensure that this transition proceeds smoothly," Luhut emphasized, highlighting that international partnerships are key to accelerating Indonesia's energy transition.
Investment and Green Industry Development
In addition to emission reduction, Luhut also stressed the importance of driving economic growth through the development of green industries that can sustain the economy in the long run. He explained that Indonesia is directing investments into renewable energy technologies, as seen in PLN's Acceleration of Renewable Energy Deployment (ARED) program, which aims to achieve 480GW of renewable energy capacity by 2060.
Luhut also pointed out the partnership with Singapore in developing solar panels and battery energy storage systems (BESS), which will allow Indonesia to export green electricity to its neighboring country.
Major Progress in the Transportation Sector
Luhut also highlighted significant progress in Indonesia's transportation sector, particularly in the adoption of electric vehicles (EVs). The government has introduced various incentives to accelerate the transition to electric vehicles, resulting in a significant surge in battery electric vehicle (BEV) sales.
"BEV sales have more than doubled, from 5,800 units in the first half of 2023 to 12,200 units in the first half of 2024," said Luhut. This marks a substantial development in Indonesia's eco-friendly transportation industry.
Developing Solutions Tailored to National Contexts
Luhut underscored that every country must choose and implement energy transition strategies that suit their unique economic and capacity conditions. Developing countries, including Indonesia, must find a middle ground between economic growth and emission reduction.
"We cannot fully adopt solutions from developed countries, as their fiscal capacities, technological access, and political realities are very different. Each country must choose strategies based on its context," Luhut emphasized.
With strong government support, international collaboration, and contributions from various stakeholders, Indonesia is on the right path to achieving a fair and sustainable energy transition.
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