The challenge lies in providing capital or funding and technology access to MSMEs, allowing them to effectively contribute to the energy transition and benefit both the community and corporationsJakarta (ANTARA) - The energy transition in Indonesia must involve micro, small, and medium enterprises (MSMEs), which play a significant role in national economic growth, Senior Vice President of Research and Technology Innovation at state-owned energy firm PT Pertamina, Oki Muraza, said.
Muraza delivered the statement while making a presentation at the Bloomberg New Energy Finance (BNEF) Forum in New Delhi, India, on August 24, 2023, according to a press release received from Pertamina here on Friday.
Muraza emphasized the importance of MSMEs' involvement in Indonesia's energy transition efforts.
Access to funding and technology is necessary for MSMEs to fully perform their roles as providers of community needs and job opportunities as well as enablers for rural communities to increase their income, he said.
He further said that community participation is vital for supplying raw materials for low-carbon energy development, and such a process can also create jobs for people, while corporations can benefit from it in terms of carbon credits.
"The challenge lies in providing capital or funding and technology access to MSMEs, allowing them to effectively contribute to the energy transition and benefit both the community and corporations," Muraza added.
As a developing country that is rich in natural resources, Indonesia is encouraging developed nations to provide funding to developing countries, which can enable them to develop technology and implement it with the assistance of countries that possess resources.
"Currently, there is a global economic gap between highly developed and developing nations. Highly developed countries have a GDP (gross domestic product) per capita of over US$50 thousand while developing countries, like Indonesia, have a GDP per capita of under US$5 thousand. We hope this capital flow serves as a form of CBDR (common but differentiated responsibilities)," he added.
Muraza explained that by involving MSMEs in energy transition efforts, Indonesia aims to combine international aid, create jobs for people, and benefit companies in expediting the energy transition.
"We hope that the energy transition in Indonesia can serve as a role model for involving communities, generating employment opportunities, increasing rural incomes, and achieving a nature-based solutions-guided energy transition," he said.
Meanwhile, Pertamina's Vice President of Corporate Communication Fadjar Djoko Santoso highlighted that MSMEs are the backbone of the national economy and a significant source of employment, underscoring their vital role in accelerating the energy transition.
"Pertamina has initiated the Desa Energi Berdikari (Independent Energy Village) program in 52 regions to provide access to renewable energy for MSMEs and communities, enabling them to become energy-independent," Santoso said.
Pertamina, as a leading company in energy transition, is committed to supporting the Net-Zero Emission 2060 target by continuously promoting programs that directly impact the achievement of sustainable development goals (SDGs).
All these efforts align with Environmental, Social, and Governance (ESG) implementation across all of Pertamina's business lines and operations.
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Reporter: Yuni Arisandy Sinaga
Editor: Sri Haryati
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