Nusa Dua, Bali (ANTARA) - Indonesian Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, offers solutions to attract investment to support energy transition for countries in the ASEAN region.

"Sustainable energy financing is urgently needed, and this can be achieved through mixed funding, cooperation between government and business entities (PPP), and international funding," Tasrif stated virtually on the sidelines of the ASEAN Energy Financing Forum in Nusa Dua, Bali, Wednesday.

Citing the report of the International Renewable Energy Agency (IRENA), the minister noted that ASEAN countries need financing worth US$29 trillion until 2050 to implement energy transition, with a 100-percent renewable energy scheme.

The investment will be used for the construction of renewable energy generators, national and international distribution transmission, storage of biofuel supplies, charging stations for electric vehicles, and labor and operational costs, he elaborated.

However, he stated that with this large fund, the budget could not only come from the government but also from partnerships with private investors and industry.

In an effort to encourage private investment, the government is striving to provide incentives, policy frameworks, and transparent investment procedures for investors, the minister noted.

Moreover, he remarked that energy transition also requires the application of clean and low-carbon energy technologies, one of which is the carbon capture, utilization, and storage (CCS/CCUS) technology.

Hence, his side had earlier issued Minister of Energy and Mineral Resources Regulation Number 2 of 2023 on the Implementation of Carbon Capture and Storage, as well as Carbon Capture, Utilization, and Storage in Upstream Oil and Gas Business Activities.

The regulation aims to support the performance of the upstream oil and gas sector, with low carbon emissions but with increased production.

Tasrif stated that Indonesia has a potential of around 12 million tons of CO2 for CCS/CCUS. Currently, there are 15 projects being studied in collaboration with oil and gas companies.

He also noted that ASEAN member countries had agreed on the importance of developing sustainable energy and energy security in dealing with climate change by developing renewable energy and drafting long-term maps for environmentally friendly technologies.

"I believe strengthening partnerships among ASEAN countries as well as between governments and industry will enhance energy security and clean energy development towards carbon neutrality," he remarked.

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Translator: Dewa Ketut S W, Resinta S
Editor: Sri Haryati
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