"Because industry players have shareholders who demand that they continue to carry out the energy transition, have financial institutions that demand that they carry out the energy transition," he explained in Jakarta on Thursday.
Soeparno emphasized that Indonesia remains committed to the energy transition to cut oil and gas imports as well as develop domestic energy sources.
However, according to him, the government needs to assess the ramifications of the US policy under current President Donald Trump on energy transition programs, such as the Just Energy Transition Partnership (JETP), which is mostly funded by the US.
"The biggest funding commitment of JETP comes from the US. Will America later withdraw its commitment, freeze, postpone, or what? I think JETP needs to be seriously considered because the US government has decided to leave (the Paris Agreement)," he said.
The JETP, in parallel with domestic policy reform, is working to mobilize investments for Indonesia's renewable energy production to reduce emissions, strengthen and expand the grid, advance energy security, create jobs, and grow the clean energy economy in Indonesia.
Through the JETP, the US International Development Finance Corporation (DFC) has committed to providing US$1 billion in financing to accelerate clean energy initiatives in Indonesia.
Thus, the US withdrawal from the Paris Agreement could lead to potential delays or reductions in funding.
President Trump announced the US withdrawal from the Paris Agreement on his first day back in office, labeling it an "unfair, one-sided Paris climate accord rip-off."
This marks Trump's second withdrawal from the Paris Agreement. He had previously exited in 2017 during his first term in office.
The Paris Agreement was adopted in 2015 by 195 members of the UN Framework Convention on Climate Change as a framework to limit global temperature increases to well below 2 degrees Celsius above pre-industrial levels while striving for a 1.5 degrees Celsius limit.
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Translator: Sinta Ambarwati, Yashinta Difa
Editor: Azis Kurmala
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