Indonesia is urging Norway to expedite a $250 million (Rp 3.9 trillion) investment commitment to accelerate the tropical rainforest country’s decarbonization program as stated in the Just Energy Transition Partnership (JETP).
Launched on November 15, 2022, at the G-20 Leaders’ Summit in Bali, the JETP is an agreement aimed at mobilizing an initial $20 billion in public and private financing to decarbonize Indonesia’s energy sector. This initiative utilizes a combination of grants, concessional loans, market-rate loans, guarantees, and private investments. The primary objective is to limit global warming to 1.5 degrees Celsius, in line with global efforts. A part of the JETP funding will be allocated to support the premature closure of coal-fired power plants by 2030.
An Indonesian delegation, led by Indonesia’s Ambassador to Norway, Teuku Faizasyah, conducted a four-day business visit to Oslo, Norway, from October 9 to 12 in their efforts to attract Norway’s investments for the development of renewable energy.
“The business visit is Indonesia’s initiative aimed at attracting Norwegian investments for the development of renewable energy in Indonesia,” Teuku said on Saturday.
Norway has pledged to offer financial support to Indonesia’s JETP. This commitment was declared during the G-20 meetings in Bali in November 2022.
The delegation includes the Indonesian Embassy in Oslo, the Indonesian Chamber of Commerce and Industry (Kadin), Innovation Norway, the Indonesia Norway Society (INS), government officials, and representatives from Indonesian institutions and companies with ties to renewable energy development. They held a series of business meetings with Norwegian companies engaged in renewable energy.
Additionally, these business meetings will be followed by plans for Norwegian companies to visit Indonesia for further feasibility studies. The delegation also engaged in collaboration with Norwegian institutions such as NORAD and Norwegian Energy Partners (NORWEP) to enhance human resource capacity in the renewable energy sector.
During their visit to Oslo, the Indonesian delegation had the opportunity to observe the implementation of waste-to-energy conversion in Haraldrud. Officials from Sumedang Regency in West Java also met with the Climate Department of the Oslo City Government to discuss urban planning and regional development with a focus on environmental sustainability and social welfare.
Both countries have established the Bilateral Energy Consultation Forum (FKBE), which facilitates discussions and technology exchange in the field of renewable energy. The 9th FKBE meeting between Indonesia and Norway in June 2022, led by the Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, and the Norwegian Minister of Petroleum and Energy, Terje Asland, addressed collaboration in renewable energy between the two nations.
Earlier this month, the UK unveiled a £27.2 million (around $33 million) grant to help Indonesia’s green initiatives. Both countries signed the technical agreement on the grant during British Minister for Indo-Pacific Anne-Marie Trevelyan’s visit to Jakarta on October, 2nd 2023. The UK has vowed to spend over £11 billion in climate financing for developing nations by 2026.
