BKPM: Even Though The Central Global Economy Is Decelerating, The Energy Transition Will Continue To Run

Photo: Doc. Antara

JAKARTA - Director of Investment Planning and Investment at the Ministry of Investment/Investment Coordinating Agency (BKPM) Indra Darmawan said the energy transition would continue even though it slowed down due to the global recession in 2023. Investment for energy transition and sustainable development is also expected to continue to increase in the future. “ I'm sure we won't get out of our ambitions and ideals to make an energy transition. We are indeed experiencing a delay, but our ideals have not changed because we have a strong commitment and great potential,” Indra said in the Joint BKPM, Bappenas, and KADIN in Jakarta, quoted from Antara, Tuesday, October 25. Currently, amid rising commodity prices and disruptions to global supply chains, some countries are returning to unsustainable sources of energy such as coal to meet their needs in the midst of the coming winter. Nevertheless, according to Indra, in the future countries in the world will continue to carry out energy transitions and sustainable development, including in Indonesia which has launched a roadmap to achieve zero carbon emissions targets. "We have postponed the carbon tax collection, but we have tested the carbon market for 50 Steam Power Plants (PLTU) where 20 PLTUs are carbon buyers and the rest are sellers. We simulate,” he said. Deputy Chairperson of the Chamber of Commerce and Industry (KADIN) for Maritime Affairs, Investment, and Foreign Affairs Shinta Kamdani said the COVID-19 pandemic crisis was a reminder to immediately realize the energy transition. “Kita sadari kita tidak bisa menghindari lagi transisi energi. Resessi global ini bukan alasan kita masih bisa menggunakan sumber energi yang tidak berkelanjutan,” katanya. Moreover, in the future, he estimates that financing for the business sector is not sustainable, such as for coal businesses, it will continue to decline because the global community is increasingly aware that sustainable development is not just a trend. "For now, investment for coal will be more difficult, because many banks are starting to not want to finance it. It will also affect the energy transition," he said.