This plan can reduce 50 million tons of carbon emissions in 2030 or 160 million tons of carbon emissions in 2040Badung, Bali (ANTARA) - The Indonesian government officially launched the Energy Transition Mechanism (ETM) Country Platform in Bali, Monday, under a financing mechanism to accelerate energy transition through ways including the early retirement of coal-based power plants.
Indonesian Finance Minister Sri Mulyani stated that the ETM Country Platform is a form of Indonesia's readiness, especially from an institutional and regulatory perspective, in raising investment for energy transition.
“The Indonesia ETM Country Platform will become a tool to pool investment from the private and public sectors, including mobilizing finance for climate action. We hope that the ETM Country Platform would convince the international community that we have a credible platform to collect energy transition investments," she affirmed.
Mulyani noted that a few weeks back, through the ETM Country Platform, Indonesia had allocated US$500 million in concession funds. It was expected to attract investment of up to US$4 billion to accelerate the early retirement of several coal power plants, with a total capacity of two gigawatts.
"This plan can reduce 50 million tons of carbon emissions in 2030 or 160 million tons of carbon emissions in 2040," she remarked.
Hence, the minister emphasized that the ETM Country Platform is Indonesia's concrete action to build the trust of domestic and foreign businessmen and investors to invest in energy transition programs in Indonesia.
"We made history today. Indonesia can do it, and I am sure many other developing and developed countries can take the same step," she remarked.
Meanwhile, President of the Asian Development Bank (ADB) Masatsugu Asakawa said that Indonesia's ETM Country Platform reflected the four important points of leadership, partnerships, financing, and political commitment for the transition from fossil energy to new and renewable based energy.
"We plan to allocate more than US$2 billion in funding support to support energy transition in Indonesia," Asakawa stated at a press conference after the launch of the ETM Country Platform.
He expressed belief that ADB, the Indonesian government, and other partners would mobilize funding up to two times in the next five years.
"The fund will support investment in energy transition and supporting policies,” he remarked.
On the same occasion, Asakawa noted that Indonesia's ETM Country Platform is a milestone for energy transition actions.
"ADB continues to support Indonesia's promising steps along with the (financing) model offered for (building partnerships in) the region," he stated.
The launch of the ETM Country Platform was also attended by other foreign dignitaries, including the US Secretary of Finance, Janet Yellen; and Managing Director of Operations of the World Bank, Axel van Trotsenburg.
Related news: Indonesia negotiating funding cooperation for energy transition
Related news: BRIN invites international collaborations for green energy transition
Related news: Energy transition must be fair, affordable: minister
Translator: Genta Tenri M, Resinta S
Editor: Sri Haryati
Copyright © ANTARA 2022
