Kadin Chairman Says There Is A Gap In Energy Transition

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid said the energy transition must be carried out in an effort to avoid the impact of climate change which causes global disasters.

Currently, said Arsjad, an energy transition is taking place around the world which is marked by a major shift from fossil fuels to renewable sources.

"However, there is a financing gap between developed and developing countries in their efforts to tackle climate change," said Arsjad in a written statement, Friday, August 19.

Arsjad added that the financing gap in overcoming the impacts of climate change needs to be addressed through joint collaboration between developed and developing countries.

Not only financing issues, transfer of knowledge and technology is also needed to build capabilities and adopt new technologies in the field of green energy and digitalization in developing countries.

Arsjad also invites all parties to take part in economic development and curb emission rates which are becoming increasingly alarming.

For the energy transition to net zero emission in 2060, Indonesia still needs an investment of around 25 billion US dollars per year.

These commitments and targets can be achieved through strong collaboration between the private and public sectors as well as international parties to build a green environment.

"Indonesia has proven to have enormous renewable energy potential in hydro, geothermal, wind and solar power and that is the path we have to choose. Indonesia is the future of the largest renewable energy supplier in Southeast Asia and the world," he said.

He added that the Indonesian Chamber of Commerce and Industry as a representative of the business world has a central role to help push Indonesia to achieve its Nationally Determined Contribution (NDC) commitment and is committed to becoming a Net Zero Organization by 2060.

Regarding the Net Zero initiative, he added, Kadin Indonesia has a Net Zero Hub which plays a central role in inviting every company, especially leading companies in Indonesia, to participate in making zero emission commitments.

Kadin Net Zero Hub will have three key aspects, namely as a strategic initiative of Kadin, as a center for Kadin publications related to net zero.

"Thirdly, as a bridge between the business world and the government to achieve net zero, as well as an opportunity to create added value," he concluded.