inp.polri.go.id - Jakarta. The Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan, underscores energy transition must be moving alongside with the economy and decarbonization. The statement was conveyed during the Indonesia International Sustainability Forum Plenary Session that raised the theme of Future of Energy Transition in Emerging Economies.

“Energy transitions must support economic growth, ensure energy security, and overcome climate change effectively. There is no single technology or solution that can resolve emission reduction globally. We must avoid being dogmatic about one carbon reduction technology,” said Coordinating Minister Luhut in his speech on Thursday (9/5/2024) at the Jakarta Convention Center, Jakarta.

In its effort for energy transition, Indonesia has formed the National Energy Transition Task Force to push energy transition initiatives in various fields. Luhut reveals that the initiatives include Just Energy Transition Partnership (JETP) with the International Partners Group (IPG) and Glasgow Financial Alliance for Net Zero (GFANZ) countries. The initiative has logged more than 400 priority projects in the electricity sector that are ready to be funded.

“Our energy transition was not only focused on reducing emissions but also on driving economic growth by developing green industries that will support our economy in the long term. To sustain and accelerate this transition, we need to collaborate and invest. The future of Indonesian energy transition depends on the collective effort of all stakeholders,” adds Luhut.

On the other hand, the Indoenesian National Electric Company (PLN) has launched Accelerated Renewable Energy Development (ARED), which aims to have around 480GW renewable energy capacity by 2060. Through Indoenesia partnership with Singapore, the collaboration has able to develop solar photovoltaic industry and Battery Energy Storage System (BESS) that enable Indonesia to export green electricity to Singapore from the solar panel produced from Indonesia.

"In transportation sectror, we have already introduced incentive and investment program to accelerate the adoption of EV and its industry development. Last year we have two Battery Electric Vehicle (BEV) car models and now we already have 25. The BEV sales has also increased two times, from 5,800 units in the first half of 2023 to 12,200 units in the first half of 2024," continued Luhut.

In his closing statement, Luhut noted that there are no similar solutions for energy transition initiative implementation as every states has their own starting point and limitation for decarbonization.

"Developing states must continue to grow while also reducing their emissions. We cannot 100% follow the same resolutions implemented by the developed countries due to fiscal capacity, access to technology, and political realities are very different. Each country must choose and implement strategies based on its own context and needs,” Coordinating Minister Luhut concluded.

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