"Australia is an important partner for Indonesia. In 2023, Australian foreign direct investment (FDI) in Indonesia grew by 4.0 percent, or US$545.2 million. We see great potential in developing pilot projects for energy transition cooperation, especially in remote areas under the KINETIK (Partnership for Climate, Renewable Energy, and Infrastructure) Framework Program," Moegiarso said in a statement released by his office on Wednesday.
The meeting was part of a series of visits by Secretary Fredericks to Indonesia to deepen understanding of the potential for bilateral cooperation in energy transition.
The meeting also aimed to obtain views from stakeholders in Indonesia, including the Coordinating Ministry for Economic Affairs, regarding closer cooperation in the industrial and environmentally friendly energy sectors as well as investment priorities between the two countries.
"Indonesia and Australia can collaborate closely to meet the needs of third countries in the region through the development of environmentally friendly energy industrial sectors and investment priorities," Fredericks said.
He then outlined the potential collaboration that could be carried out in the future by his party under the KINETIK Framework Program to support the Indonesian government in its clean energy efforts.
The KINETIK Framework Program is a follow-up to a commitment made by the Indonesian president and the Australian prime minister at the 2023 Indonesia-Australia Annual Leaders' Meeting (ALM).
KINETIK is expected to realize concrete projects in the environmentally friendly energy sector, supported by Australian cooperation programs such as the Indonesia-Australia Partnership Program for the Economy (PROSPERA), as well as increase the involvement of business actors from both countries.
During their meeting, Moegiarso and Fredericks also agreed to identify new opportunities in investment and trade in the renewable energy sector, especially in solar power technology, hydrogen technology, and carbon capture and storage (CCS), which could accelerate the efforts of both countries to achieve net zero emissions (NZE).
On the occasion, Fredericks introduced the Australian Clean Energy Finance Corporation (CEFC), which can support the Indonesian government with the scheme to send Indonesian experts to Australia to deepen collaboration in the sustainable energy transition.
Moegiarso then highlighted Indonesia-Australia trade relations, which have increased since the implementation of the Indonesia-Australia Comprehensive Agreement (IA-CEPA). He said he hoped that the utilization of existing trade cooperation would bring more investment to Indonesia.
"We invite Australian businessmen to invest in Indonesia by taking advantage of various incentives and facilities in special economic zones (SEZs). Of the 21 existing SEZs, there are 10 SEZs with a special focus on the energy sector," he added.
Fredericks concurred that the private sector has an important role in the energy transition and green economy collaboration. In addition, both countries need to increase interactions between their people.
Moegiarso said that the new Indonesian government will continue various priority programs of the current government, especially regarding Indonesia's accession to the Organisation for Economic Co-operation and Development (OECD) and energy transition towards NZE.
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Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Azis Kurmala
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