Strengthening Indonesia-Australia Cooperation in Energy Transition

Jakarta, INTI - The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, received a visit from the Secretary of the Department of Climate Change, Energy, Environment, and Water of Australia, Mr. David Fredericks, at the Ali Wardhana Building on Tuesday (02/07). The meeting discussed strengthening cooperation between the two countries in the field of energy transition.

"Australia is one of Indonesia's important partners. In 2023, Australia's Foreign Direct Investment in Indonesia grew by 4.0% or USD 545.2 million. We see great potential in developing pilot projects for energy transition cooperation, particularly in remote areas under the KINETIK Framework Program," said Secretary Susiwijono.

Potential Cooperation in Energy Transition

This meeting was part of Secretary Fredericks' series of visits to Indonesia to deepen understanding of the cooperation that can be carried out between Australia and Indonesia in the field of energy transition. Additionally, this meeting aimed to gather insights from stakeholders in Indonesia, including the Coordinating Ministry for Economic Affairs, regarding closer cooperation in the industrial and environmentally friendly energy sectors and investment priorities between the two countries.

"Indonesia and Australia can collaborate more closely to meet the needs of third countries in the region through the development of environmentally friendly energy industry sectors and investment priorities," said Secretary Fredericks. Furthermore, Secretary Fredericks also conveyed the potential collaboration that could be carried out in the future by the Australian Government to support the Indonesian Government under the Partnership for Climate, Renewable Energy, and Infrastructure (KINETIK) Framework in efforts towards clean energy.

KINETIK Framework and Concrete Environmentally Friendly Energy Projects

The KINETIK Framework Program is a follow-up to the commitment of the Indonesian President and the Australian PM at the 2023 Indonesia-Australia Annual Leaders’ Meeting (ALM). It is expected that KINETIK can realize concrete projects in the environmentally friendly energy sector, supported by various other Australian cooperation programs such as the Indonesia Australia Partnership for Economic Development (PROSPERA) Program, and increase the involvement of business actors from both countries.

In the friendly meeting, both parties agreed to identify new opportunities in investment and trade in the renewable energy sector, particularly in solar power technology, hydrogen technology, and Carbon Capture and Storage (CCS) that can accelerate both countries in achieving Net Zero Emission (NZE).

Clean Energy Finance Corporation and Expert Collaboration

Secretary Fredericks also introduced the Clean Energy Finance Corporation (CEFC) Australia, which can facilitate the Indonesian Government with schemes that allow sending Indonesian expert teams to Australia to deepen collaboration in sustainable energy transition.

On this occasion, Secretary Susiwijono also highlighted the increasing trade relations between Indonesia and Australia since the implementation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), and it is hoped that the utilization of existing trade cooperation will bring more investment to Indonesia. "We invite Australian business actors to invest by taking advantage of various incentives and facilities in Special Economic Zones (KEK). Currently, out of the 21 KEKs, 10 KEKs have a special focus on the energy sector," explained Secretary Susiwijono.

The Crucial Role of the Private Sector and Education in Energy Transition

Secretary Fredericks agreed that the private sector plays an important role in the collaboration of energy transition and green economy. In addition, both countries need to enhance people-to-people interactions. As known, Australia Awards Indonesia is one of the largest educational and training cooperation programs, with more than 13,000 alumni spread across various sectors supporting Indonesia's development. The high interest of Indonesians in pursuing education in Australia has led to the establishment of Australian Higher Education institutions in several cities in Indonesia.

Commitment to Continue Priority Programs

At the end of the meeting, Secretary Susiwijono emphasized that the new Indonesian government will continue various current government priority programs, particularly related to Indonesia's accession efforts to the OECD and Indonesia's energy transition towards NZE. Australia responded positively and committed to collaborating more closely, leveraging the advantages of both countries.

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