Indonesia And Canada Establish Critical Mineral Cooperation

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia signed a Memorandum of Understanding (MoU) regarding critical mineral cooperation with the Canadian Government.

The signing of the MoU was carried out by the Minister of Energy and Mineral Resources on behalf of the Government of Indonesia and the Minister for Export Promotion, International Trade, and Canadian Economic Development Mary Ng on behalf of the Government of Canada.

The MoU covers several strategic work areas, including the application of environmental, social and governance standards (ESG), reducing greenhouse gas (GHG) emissions through clean technology, as well as strengthening trade and investment in the mining sector.

In the Energy Transition Roundtable session, Bahlil emphasized the importance of this collaboration to meet Indonesia's increasing energy needs.

"Our current electricity is 91 gigawatts with economic growth below 6 percent. President Prabowo's target for future economic growth is 8 percent, so we need an additional 61 gigawatts to support this target," Bahlil said in a statement to the media, Tuesday, December 3.

Bahlil also said that the energy transition is the main focus of the Indonesian government because the 2025-2033 RUPTL is designed with a target of 60 percent of new and renewable energy.

"We are committed to achieving net zero emissions by 2060, even pushing it to be faster by 2050," Bahlil added.

On the other hand, Bahlil expressed optimism about the potential for cooperation with Canada in the field of nuclear energy. "We know Canada is one of the leading countries in nuclear development. The House of Representatives has approved the use of nuclear power, and we are targeting its regulations to be completed by 2025. Its implementation will begin in stages in 2032," Bahlil said.

Bahlil also highlighted Indonesia's great potential in renewable energy, including hydroelectric power plants (PLTA).

"We have a hydropower plant in Kalimantan (Kayan river) of 12 gigawatts and 23 gigawatts in Papua. This is a great opportunity to support the energy transition," he said.

In addition, Bahlil also emphasized the importance of maintaining a balance between advanced technology and affordable prices.

"The technology can be good, but the price should not be too expensive. We are looking for a balanced solution so that technology can be applied with wise economic value," he added.

On the same occasion, Mary Ng emphasized Canada's support for the sustainable energy transition in Indonesia.

"Our commitment to support Indonesia's just and sustainable energy transition is substantial. This includes our global climate funding of 5.3 billion Canadian dollars, including Indonesia over the past five years," said Mary Ng.

As part of this funding, continued Mary Ng, Canada supports key projects with the Asian Development Bank, such as the geothermal power plant Sarulla in North Sumatra and wind and solar power plants in South Sulawesi and Lombok.

He also mentioned that Canada is proud to be a partner in the Just Energy Transition Partnership (JETP), which aims to mobilize public and private financing of up to 20 billion US dollars to support Indonesia's energy transition.