The most important thing is that we (have been able to) begin the transition journey now, starting with reducing carbon emissions.
Jakarta (ANTARA) - The Indonesia Investment Authority (INA) has signed three memorandums of understanding (MoUs) on cooperation with several domestic and international stakeholders, including the Asian Development Bank (ADB), for supporting the energy transition mechanism (ETM).

In a statement issued on Monday, chairman of the board of directors of INA, Ridha Wirakusumah, said that encouraging and expediting the use of renewable energy is key for realizing sustainable development and climate resilience.

"We are excited to support and become a part of Indonesia's energy transition attempts," he added.

He said he believes that reducing the use of carbon-fueled power plants and realizing large-scale investments in renewable energy would help Indonesia meet its carbon-neutral commitments, create new jobs, as well as promote economic growth.

"The most important thing is that we (have been able to) begin the transition attempt now, starting with reducing carbon emissions," he added.

The three MoUs will open up opportunities for INA to partner with several equity investors.

INA has signed the first agreement with state-owned infrastructure funding company PT Sarana Multi Infrastruktur (SMI), which has been appointed as the country platform manager for ETM in Indonesia.

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INA and SMI have agreed to collaborate on evaluating investment projects as well as optimizing the reduction of the utilization of steam-fired power plants (PLTUs).

The second agreement has been inked between INA and the Global Energy Alliance for People and Planet (GEAPP) -- a partnership coalition between public and private institutions, including several leading international foundations, such as the Rockefeller Foundation, Ikea Foundation, and Bezos Earth Fund.

The GEAPP and INA will explore opportunities to accelerate the closure of PLTUs.

The third MoU has been signed by INA, ADB, state-run electricity provider PT PLN, and PT Cirebon Electric Power (CEP) to explore the feasibility of financing the early retirement of PLTU Cirebon 1.

INA and ADB have also committed to ensuring that the ETM program realizes a fair energy transition to minimize any negative impacts that may arise from the premature retirement of the PLTU.

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Translator: Sanya Susanti, Uyu Liman
Editor: Suharto
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