PGII Investment Commitment Of 600 Billion US Dollars To Develop Countries, Indonesia Can Take ADVANTAGE Of Accelerating Energy Transition

President Jokowi at the G20 Bali Summit, Tuesday (15/11/2022), at The Apurva Kempinski Hotel, Bali. (Photo: BPMI Setpres)

JAKARTA - Partnership for Global Infrastructure and Investment (PGII) is committed to investing 600 billion US dollars over the next 5 years in the form of loans and grants for sustainable infrastructure projects for developing countries.

Executive Director of the Center of Reform on Economics (CORE) Indonesia Mohammad Faisal, assessed that Indonesia could take advantage of this opportunity to encourage and accelerate the energy transition.

"If this is intended to build sustainable infrastructure, I hope it will also be related to infrastructure whose direction is to encourage transformation to a greener one, from an energy perspective, for example," said Mohammad Faisal in Jakarta, Wednesday, November 16.

The reason, continued Faisal, is that the green or sustainable energy sector requires a very large amount of money. On the other hand, Indonesia has a variety of resources for green energy that have not been exploited due to funding problems.

"If we talk about energy infrastructure, especially the greener one, the problem is that so far it has been large from financing or investment needs. So it is necessary to have a large additional investment for Indonesia, which has a wide green energy potential," he explained.

According to Faisal, although green energy requires large funds as an initial investment, these energy markets and consumers are also quite large. When sustainable energy infrastructure is formed, operational costs will be cheaper.

"The market is also large. But it takes high initial funds. Because actually if there is infrastructure, operational costs are cheaper for the use of greener energy, for example solar panels, compared to conventional ones, which are fossil fuels," he said.

Therefore, Faisal encouraged the government to bind to this commitment. "So the direction is like that. It is hoped that it can bridge these needs. So if there is a commitment, it really needs to be tied up, because in terms of the need for sustainable infrastructure investment, it is indeed large," he concluded.

As is known, during the Indonesia G20 Presidency Summit, a PGII meeting was held, Tuesday, November 15.

PGII is a collaborative effort by members of the G7 (United States, Britain, Italy, Japan, Germany, Canada and France) which was first launched in June 2021 at the 47th G7 Summit in the UK.