Indonesia utilizes blended financing from PT Sarana Multi Infrastruktur (SMI) and from the Asian Development Bank (ADB)Nusa Dua, Bali (ANTARA) - Indonesia utilizes blended financing as an alternative source to support the transition to clean energy or reaching net zero emissions by 2060, the Energy and Mineral Resources Ministry stated.
"Indonesia utilizes blended financing from PT Sarana Multi Infrastruktur (SMI) and from the Asian Development Bank (ADB)," the ministry's Director of Energy Conservation, Gigih Udi Atmo, stated at the ASEAN Energy Financing Forum here on Wednesday.
He also drew attention to another form of international financial support through the Just Energy Transition Partnership (JETP) that can support the energy transition goal.
The JETP was agreed upon by leaders or heads of state at the G20 Summit in Bali last year. The partnership aims to realize cooperation in funding energy transition.
"It (JETP) only covers a few projects, and it is limited to the power plant sector, whereas (energy transition) is also about industry, transport, residential and commercial buildings," he elaborated.
Meanwhile, former minister of National Development Planning and Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro agreed that blended financing and carbon pricing are alternatives for energy transition financing.
He remarked that blended financing not only groups different sources of funds but also focuses on mobilizing capital from the private sector.
He noted that economic benefits from carbon pricing can be redistributed from the private sector to the public or government sector through several instruments, including carbon taxes and carbon credits.
The carbon taxes and credits can be used to finance the energy transition program.
Atmo, in his presentation, explained that Indonesia has a roadmap to achieve zero carbon emissions by 2060 by shifting from fossil energy to clean energy.
The roadmap also includes other strategies comprising electrification, development of biofuel, early retirement of coal-fired power plants, provision of new energy sources, such as hydrogen and ammonia, and increasing energy efficiency.
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Translator: Dewa W, Kenzu
Editor: Sri Haryati
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