The agreement was reached on the sidelines of the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial-Level Meeting in Singapore on Thursday.
"To reduce carbon emissions by 31.89 percent with our own efforts and up to 43.20 percent with international support, Indonesia is seeking to explore cooperation, both bilateral and multilateral," Hartarto said in a statement from his ministry.
He welcomed the initiative of the South Korean Ministry of Trade, Industry, and Energy (MOTIE) to build bilateral cooperation with Indonesia to implement Article 6 of the Paris Agreement.
Under the collaboration, South Korean and Indonesian companies will be encouraged to work together to develop projects to reduce carbon emissions in Indonesia, supported by funding subsidies from MOTIE.
In addition, the two countries will obtain carbon credits through Internationally Transferred Mitigation Outcomes (ITMO) from select projects that receive subsidies from MOTIE.
"MOTIE has contacted the Coordinating Ministry for Economic Affairs since last year. We agreed about the cooperation and signed the MoU today," Hartarto said.
The form of cooperation in the MoU shares many similarities with the Joint Crediting Mechanism (JCM), which has been carried out by Indonesia and Japan since 2013, he said.
Currently, there are 55 JCM projects spread across various regions of Indonesia, which have contributed significantly to supporting low-carbon development in the country.
Hartarto also expressed hope that the cooperation with South Korea would significantly contribute to Indonesia's efforts to achieve the targets of enhanced nationally determined contribution (ENDC) by 2030 and net zero emissions (NZE) by 2060 or sooner.
He underscored that the collaboration could support sustainable development in Indonesia by increasing green investment.
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Translator: Bayu Saputra, Raka Adji
Editor: Anton Santoso
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