Accelerating the Energy Transition, Indonesian Minister of Finance Launches ETM Country Platform

Energy Environment

BALI, JAKTIMES.COM- The Indonesian government through the Minister of Finance (Minister of Finance) Sri Mulyani Indrawati launched the Energy Transition Mechanism (ETM) Country Platform to accelerate the energy transition towards new and renewable energy (EBT) to anticipate climate change.

Sri Mulyani said the government must immediately take decisive action to anticipate climate change. Accelerating the transition towards a green economy will not only protect the world globally, but specifically for the people of Indonesia, from the disastrous impacts of climate change.

“We can’t just commit in rhetoric, that’s why we are working hard on a very detailed plan and it will require significant investment,” said Sri Mulyani at the Grand Launching of the Indonesia Energy Transition Mechanism Country Platform in Jimbaran, Bali, Monday (14/ 11/2022).

He said one of the vital things in the energy transition is to mobilize financing and overcome the trade off between the environment and the economy. From the financing side, there needs to be alignment of global investment rules so that it can encourage investment from the private sector into programs and sectors that produce optimal emission reductions.

“It sounds counterintuitive, but what we are talking about is how institutions, especially private, investment institutions, non-profits and governments can invest in quality power generation in developing countries, but can reduce emissions whether that is in the form of technology or involves early retirement,” said Sri Mulyani as quoted by from (14/11).

Sri Mulyani said, there are many challenges faced in the transition from fossil fuels to EBT, including costs for strengthening network capacity and integrating parts of renewable energy. At the same time, the volatility of global energy markets creates increased risks as well as costs of approaching a business that relies on fossil fuels.

“As policy makers, we feel there is a real trade off between our short-term pragmatism and our medium-term commitment,” said Sri Mulyani.

Addressing these challenges requires major collaboration as well as international support. Especially for developing countries like Indonesia in measurable and planned financing technology and transition management.

“That goes beyond rhetoric, being technocratic, but also a technical challenge that needs to be overcome. Indonesia remains focused on navigating both post-COVID-19 pandemic and strengthening economic recovery, but at the same time continues to be committed to green energy,” said Sri Mulyani (IP/JT)

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