President to call for energy transition funding at G20

President to call for energy transition funding at G20

Screenshot—President Joko Widodo (Jokowi) at the virtual National Conference of Geopark Indonesia II originating from Jakarta on Monday (November 22, 2021). (ANTARA/Indra Arief/KT)

If we transit the energy, the cost will inflate. The question is who will be responsible? The government? The people? Or the global community? It is not easy to pay for the price gap.
Jakarta (ANTARA) - President Joko Widodo (Jokowi) has said he will clearly convey the need for energy transition funding to G20 leaders at next year's G20 Summit in Bali.

"I am going to talk to all the G20 leaders. I do not want the conversation to be the same as two or one years ago. This time, I want the question related to the need for funds (to be addressed)," the President expounded at the opening ceremony of the '10th Indo EBTKE Conex 2021', which he joined virtually from the State Palace on Monday.

To support the global energy transition to new and renewable energy, there is a price that will need to be paid as energy prices will increase, he said. The price gap is unlikely to be funded by the state or charged to the public, he added.

"(We need to talk about) on what ways that are doable. If there is a viable one, it means we can complete the energy transition. If there is not, we do not have to be stressed as there will be no results," he explained.

He highlighted the price of new energy, saying it will remain more expensive than coal while funding and investments kick in. The price that has to be paid will reach hundreds of trillions, he said.

"We have not figured out who will pay for this price gap. Our country? No way," he stressed.

It will be impossible to pass on the additional costs to the public as electricity tariffs will rise, the President added.

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"It is impossible. If it happens like that, the price will increase very high," he explained.

He then informed that he has assigned the Minister of Maritime Affairs and Investment, the Minister of Energy and Mineral Resources (ESDM), and the SOEs Minister to formulate a scenario that is accompanied by real calculations.

If there is a good and real scenario, then it will be presented at the G20 Summit in Bali next year, he added.

"If we transit the energy, the cost will inflate. The question is who will be responsible? The government? The people? Or the global community? It is not easy to pay for the price gap," he pointed out.

However, Indonesia has considerable potential as it has 4,400 thousand big and small rivers that can be utilized as sources of hydropower, he pointed out.

"But the investment (for hydropower) is too huge," the President remarked. 

Related news: Finance Ministry explains Indonesia's green financing policy

 

 

 

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