Indonesia Pushes for B20 Contribution on Green Energy Transformation

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 27 Januari 2022
Category: News
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President Jokowi launches a groundbreaking of Indonesia Green Industrial Zone, at Bulungan, North Kalimantan province, Tuesday (21/12). (Photo: BPMI/Laily Rachev)

Transformation towards green energy is one of the main focuses in Indonesia’s G20 Presidency, according to President Joko “Jokowi” Widodo.

In line with that, the President has call for contribution of B20 in the effort to boost this energy transformation.

The statement was made when the President officially opened the B20 Preliminary Meeting or B20 Inception Meeting 2022 virtually from Bogor Presidential Palace in West Java province, Thursday (27/1).

“We hope B20’s contribution can accelerate a smooth energy transformation without bringing negative impacts on small communities,” he said.

Global solutions in terms of funding and partnerships, the President added, are an agenda that must be the main concern, including technology transfer to encourage green economy-based production.

“The potential in the renewable energy sector must be followed by a clear scenario and roadmap, including funding and investment,” he added.

President Jokowi went on to say that Indonesia has a new and renewable energy potential of 418 gigawatts, including from water, geothermal, wind and solar sources.

Indonesia also has a wealth of metallic mineral resources needed to drive the transition to a sustainable green economy, he added.

“We are rich in nickel, bauxite, tin and copper. We will make sure we will supply enough of these materials for the world’s needs but not in the form of raw materials, but in the form of finished or semi-finished goods with high added value,” he said.

The President also explained that nickel downstreaming, which began in 2015 in Indonesia, has brought a positive impact on job creation, increased export value, and Indonesia’s trade balance.

According to the President, the value of Indonesia’s exports has increased by US$230 billion that was greatly influenced by the increase in steel exports.

In the meantime, steel exports in 2021 will reach US$20.9 billion, increasing from that in the previous period at US$1.1 billion in 2014.

As for 2022, President Jokowi estimated that the value of Indonesian steel exports can reach the range of US$28-30 billion.

“After nickel, we will encourage investment in the bauxite, copper and tin sectors,” he said, adding that the mechanism for the transition of energy from fossil energy to new and renewable energy will continue to guarantee investment certainty.

The Indonesian Government, he added, is also encouraging the “early retirement” of steam power plants (PLTU) in the islands of Java and Sumatra and switching to new and renewable energy such as geothermal and solar panels.

“We will enable participation of the private sector to invest in this energy transition. There are currently 5.5 gigawatt steam power plants ready for this early retirement program,” he added.

The Indonesian Government, according to the President, has also decarbonized the transportation sector by building mass urban transport, such as the LRT and MRT in capital Jakarta, as well as encouraging investment in electric car factories.

“We are inviting investment that can encourage mutually beneficial added value,” he remarked. (TGH/UN) (EST/EP)

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