"Indonesia has big positive ambitions to encourage the energy transition through the development of renewable energy," Mortensen noted at the G20 Development Ministerial Meeting 2020, which was followed online from Jakarta on Wednesday.
To encourage the development of green energy in Indonesia, which is still dominantly using fossil energy, it is necessary to reform the nation’s energy policies.
In practice, the supply of green energy and fossil energy requires the reformation of expensive fossil oil subsidies, he said.
“There are several important points in the energy transition. First, attract the necessary private investment. So, an ambitious policy framework is needed. The policy framework must also be calculated and transparent,” Mortensen added.
He said that a transparent policy framework is key for building investor confidence and attracting private investment for the blue economy.
Second, appropriate incentives must be provided for the development of green energy, he added.
Regarding the policy of developing a blue economy road map, he said that it must be in line with the development of green energy in Indonesia.
According to Mortensen, a strong blue economy should be based on a fair and equitable green energy transition.
"The blue economy and the green energy transition must go hand in hand," he said.
Third, the implementation of the blue economy will require strong regional and multilateral collaboration to address cross-border issues.
"We support Indonesia, which makes the energy transition one of the priorities in the G20," Mortensen said.
Regarding the maritime sector, he noted that Indonesia has an abundance of natural resources.
"There is a huge opportunity that Indonesia can take advantage (of) in accelerating the use of green energy and encouraging decarbonization," he added.
He said that Indonesia has a strategic position and the potential to become a green shipping hub that provides green fuel for global shipping fleets.
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Reporter: Azis Kurmala
Editor: Sri Haryati
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