French funding to facilitate Indonesia's transition to green energy

French funding to facilitate Indonesia's transition to green energy

Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan (right) and French Minister of Foreign Affairs Jean-Yves Le Drian (left) witness the signing of the Letter of Intent (LoI) between France and Indonesia on Cooperation for the Acceleration of the Energy Transition in Indonesia on Wednesday (November 24, 2021). (ANTARA/HO-Indonesian Coordinating Ministry for Maritime Affairs and Investment)

Jakarta (ANTARA) - France is ready to disburse funding worth 520 million Euros to help accelerate Indonesia's green energy transition, according to the Coordinating Ministry for Maritime Affairs and Investment's statement received here on Thursday.

The funding disbursal was agreed upon at the signing of the Letter of Intent (LoI) between France and Indonesia on Cooperation for the Acceleration of the Energy Transition in Indonesia.

The signing of the LoI was aimed at intensifying partnerships and implementing various strategic programs in the Indonesian energy sector.

The LoI was signed by French Ambassador Olivier Chambard, Deputy for Coordination of Maritime Sovereignty and Energy at the Coordinating Ministry for Maritime Affairs Basilio Dias Araujo, Country Director Agence Française de Développement (AFD) Emmanuel Baudran, and President Director of PT Perusahaan Listrik Negara (PLN) Zulkifli Zaini on Wednesday (November 24).

The Ministry's Deputy for Coordinating Maritime Sovereignty and Energy, Basilio Dias Araujo, opened up for France to invest in priority renewable energy projects and encouraged the French nation to prepare innovative financing with local partners in Indonesia.

The AFD has mobilized an array of financial instruments, including technical assistance, to help Indonesia with the energy transition acceleration program worth 520 million Euros.

Related news: President to call for energy transition funding at G20

According to Basilio, this LoI will be able to accelerate the implementation of energy transition, from fossil-based energy to new sustainable and clean renewable energy. It will make Indonesia one of the world's global key players in the energy transition.

The LoI contains, among other things, a concession loan scheme for the development of the Sustainable and Inclusive Energy Programme policy, concession loans to PLN for transmission and distribution projects, grants for experts and feasibility studies, as well as loans to state-owned banks for mini-hydro power projects and other renewable energy.

Signing of the LoI was witnessed by Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan and French Minister of Foreign Affairs Jean-Yves Le Drian.

In conversation with Jean-Yves Le Drian, Minister Pandjaitan stated that bilateral cooperation between Indonesia and France was important not only in the energy sector but also in health, information technology (IT), defense, maritime, and environmental sectors, among others.

French Minister of Foreign Affairs, Jean-Yves Le Drian, expressed investment readiness, particularly in the health and renewable energy sectors.

"Transformation and technological innovation in the energy sector is very important, and for that, we will invest in these two fields in Indonesia. This is based on Indonesia's various achievements, including the national handling of COVID-19 and various program strategies in the energy sector, including the international agreement of world leaders to reduce carbon emissions during the G20," he affirmed.

Related news: PLN and French companies sign agreements on renewable energy development

The French foreign minister also lauded the Indonesian government for its seriousness in implementing energy transition.

"I strongly praise Indonesia's commitment to continuing energy transition, such as replacing fossil energy sources like coal with clean technology-based electrical energy. I suppose France can help to accelerate this transformation," Le Drian noted.

"I am confident that many French companies will want to invest in Indonesia, particularly in the electric car battery sector," he added.

Furthermore, Coordinating Minister Pandjaitan also highlighted the potential for maritime cooperation between Indonesia and France that promotes the green concept.

"We warmly welcome France as a strategic partner in the development of clean and sustainable technology industries in Indonesia, particularly in the maritime sector," he stated.

In the near future, detailed cooperation activities and projects implemented by France and Indonesia in the LoI will be set out in a separate agreement between both nations in order to ensure some more concrete cooperation. 

Related news: Energy transition can no longer be delayed: President Jokow  

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