"We are very grateful to have good cooperation with the New Zealand Government through MFAT (Ministry of Foreign Affairs and Trade) and the New Zealand Embassy," Indonesian Energy and Mineral Resources Minister Arifin Tasrif said at a press conference in Jakarta on Thursday.
This joint effort is expected to be able to accelerate geothermal development in Indonesia and provide sustainable solutions to support Indonesia's energy transition, he said.
He informed that the New Zealand Government, through the MFAT, has committed to extending cooperation in the geothermal sector with Indonesia for the 2023–2028 period, with a total grant of 15.64 million New Zealand dollars (NZD), which is equivalent to Rp147.8 billion.
The cooperation program has been named the Indonesia-Aotearoa New Zealand Geothermal Energy Program (PINZ).
At the press conference, Tasrif also emphasized Indonesia's decarbonization commitment, which was also encouraged through the focus of Indonesia's G20 Presidency and the achievement of the Bali Compact that gathered commitment from G20 countries toward energy transition.
In addition, the minister said that Indonesia's electricity needs are projected to reach 1,942 kWh by 2060. The challenge will be to provide this electricity using renewable energy sources that are affordable, reliable, and sustainable.
"To increase the use of clean energy, Indonesia will build around 700 gigawatts (GW) of renewable energy power plants, considering that Indonesia has abundant sources of renewable energy, reaching more than 3,600 GW," he noted.
According to him, New Zealand also has significant resources and expertise for developing geothermal projects, including direct utilization and innovation in geothermal operations, such as green hydrogen production and carbon capture storage (CCS).
Meanwhile, New Zealand Foreign Minister Nanaia Mahuta said that PINZ's commitment is based on achievements and will further expand Indonesia's access to affordable, reliable, and clean energy.
Aotearoa New Zealand is strengthening support for Indonesia's geothermal energy sector through continued investment in the PINZ program. This collaboration will help reduce climate emissions and benefit the Indo-Pacific region broadly, she added.
Mahuta said the PINZ program aims to increase the contribution of geothermal energy for realizing Indonesia's renewable energy targets through technical assistance and capacity building.
This commitment of 15.6 million NZD will help Indonesia to achieve its renewable energy target through the provision of technical assistance and capacity building in three main areas, namely the regulatory framework, geothermal exploration, and increasing the skills and technical capacity of the workforce, she added.
The funding will be provided for five years based on the long-standing good relationship between New Zealand and Indonesia in geothermal development, she said.
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