ESDM Minister Bahlil Lahadalia stated on Tuesday that the MoU, inked on December 2, covers several strategic work areas, including the implementation of environmental, social, and governance (ESG) standards; reducing greenhouse gas (GHG) emissions through clean technology; and strengthening trade and investment in the mining sector.
According to the minister, this cooperation is important to meet Indonesia's increasing energy needs.
"Our electricity is currently 91 gigawatts, with economic growth below six percent. President Prabowo Subianto's target for future economic growth is eight percent. Therefore, we need an additional 61 gigawatts," Lahadalia remarked.
The minister highlighted that energy transition is the main focus of the Indonesian government, as reflected in the 2025-2033 Electricity Supply Business Plan, dominated by new and renewable energy (NRE).
"We designed the business plan with a target of 60 percent new and renewable energy. We are committed to achieving net zero emissions by 2060, even pushing for it to 2050," he remarked.
Furthermore, Canadian Minister of Export Promotion, International Trade, and Economic Development Mary Ng emphasized that her side supports sustainable energy transition in Indonesia through global climate funding.
"Our commitment to supporting a just and sustainable energy transition in Indonesia is substantial. This includes the global climate funding of CA$5.3 billion, including for Indonesia over the past five years," she explained.
As part of this funding, Canada supports major projects with the Asian Development Bank, such as the Sarulla geothermal power plant in North Sumatra and wind and solar power plants in South Sulawesi and Lombok.
Mary highlighted that her country is proud to be a partner in the Just Energy Transition Partnership (JETP), which aims to mobilize public and private financing of up to US$20 billion to support Indonesia's energy transition.
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Translator: Ahmad Muzdaffar F, Resinta Sulistiyandari
Editor: Arie Novarina
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