Bali (ANTARA) - The skyrocketing price of global oil is one reason why the energy transition must not be delayed, Deputy Minister I of State-Owned Enterprises Pahala Nugraha Mansury has said.

"The soaring world oil price is one reason not to delay the energy transition. State-owned enterprises must start developing clean energy sources rather than building fossil power plants," he stressed during the "State-Owned Enterprises International Conference” in Nusa Dua, Bali, on Monday.

The State-Owned Enterprises Ministry is encouraging decarbonization as a way to enable the energy transition, he added. The process could become a starting point for state-owned enterprises to pursue energy security and independence. Decarbonization is the process of replacing fossil fuels with more eco-friendly fuels.

There are many ways to implement decarbonization, including through cooperation with stakeholders, Mansury said.

"The energy transition is something that cannot be avoided because Indonesia has set a target to achieve net zero emissions by 2060 and a 32-percent emission reduction by 2030. So, I think how state-owned enterprises develop portfolios to reduce carbon emissions, either individually or in synergy with the state-owned enterprises' ecosystem," he said.

Meanwhile, speaking at the same conference, director of the energy division department of the Asian Development Bank (ADB), Toru Kubo, said that his administration has launched the Energy Transition Mechanism (ETM) to help reduce several countries' dependence on fossil-based energy and switch to clean energy.

“Financing is a crucial issue in the transition from fossil energy to new and renewable energy. Therefore, there must be blended financing so that creditors can receive funds for programs to reduce greenhouse gas emissions, but on the other hand, a good carbon price must also be set,” Kubo added.

ADB is working with Indonesia, the Philippines, and Vietnam on the energy transition. In addition, they are working with regional and global financial institutions to establish the Asset Regeneration Platform to increase bankable investment in the climate change sector.

The ministry hosted the “SOE International Conference: Driving Sustainable and Inclusive Growth” on October 17 and 18, 2022, in Nusa Dua, Bali.

The event is part of the “Trade, Investment, and Industry Working Group (TIIWG) Road to G20,” as a form of the government's commitment to supporting the Environment, Social, and Governance (ESG) and Sustainable Development Goals (SDGs) aspects, particularly in the health sector, financial inclusion, digital transformation, and energy transition.

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Translator: Aji Cakti, Mecca Yumna
Editor: Azis Kurmala
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