Clean Stun Program Requires USD 1 Trillion Fund, Indonesia Diversifies Funding Schemes

JAKARTA - In order to develop clean stun, Indonesia will optimize its status as the G20 Presidency to attract innovative and profitable funding. That way, Indonesia has a varied funding scheme in seeking investment support between countries and international institutions.

"Indonesia is open to international cooperation, including in matters of foreign investment, innovative funding schemes, and technology transfer based on the spirit of equal and mutually beneficial partnerships," said Director General of New Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources Dadan Kusdiana in a statement quoted by Antara. , Monday, February 21. Dadan explained that the government is encouraging blended finance and is currently drafting a presidential regulation related to the scheme. support the development of clean stun in Indonesia. "The blended finance funding model is an Indonesian climate change trust fund that will facilitate the acquisition of funds from donors, namely the Asian Development Bank, European Investment Bank (grants/loans) and the World Bank," said Dadan.Selan he continued, SDG Indonesia Satu is an integrated platform to support projects related to the Sustainable Development Goals (SDGs) which consists of four pillars, namely development facilities, de-risking, financing, and equity. Then, non-government budget investments that encourage the private sector in project development national strategic infrastructure. This scheme facilitates investors in equity financing (direct equity financing and equity investment instruments). There is also a Tropical Landscape Finance Facility (TLFF) which aims to utilize public funding for sustainable land use, including in the areas of ecosystem restoration and clean stun investments. In addition, there are Public Private Partnership (PPP/PPP) is a long-term contract between the private sector and government entities to provide public service assets in the form of project development facilities, viability gap found, infrastructure guarantees and availability payments. Lastly, funding schemes from commercial banking through the Financial Services Authority (OJK) policy that requires a certain percentage of the credit portfolio to finance green projects.

Dadan said that the investment needed to achieve the carbon neutrality target was very expensive. If Indonesia wants to be free of carbon emissions in 2060, then in total it will need around 1 trillion US dollars or 29 billion US dollars per year. US dollars. "This transmission is usually a package (construction of a power plant) so that it can operate," explained Dadan. He further said that the cost of developing a clean stun generator is getting cheaper and more efficient. Net net income in 2020 has decreased significantly globally over the last 10 years. Even the operating costs of new clean stun plants, especially solar power plants (PLTS) and wind power plants (PLTB), including integration costs can compete with steam power plants ( PLTU) existing 800 megawatt scale. "Intermittent generator prices (solar and wind) is decreasing. Within 10 years, it has fallen by almost 80 percent from US$5,000 per kWh to US$1,000 per kWh. Even the auction conducted by PLN has been able to penetrate below the coal power plant," said Dadan.