Great Potential, Indonesia Menjadi Pemain Penting Dalam Transitisi Energi Global

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati stated that Indonesia has enormous opportunities and potential in the process of transitioning renewable energy globally. According to her, RI is a country that is very rich in alternative energy resources.

"Our geothermal energy reserves are the most abundant in the world because they are located in the Ring of Fire. We even have 800 rivers that can provide hydropower", he said in Munich, Germany as reported by the official website on Monday, February 20.

The Minister of Finance explained that the transition of electric vehicles is a great opportunity for Indonesia as the world's largest nickel producer. Therefore, the Indonesian government continues to improve the business investment climate so that investors will come to build smelters and even build electric vehicles and batteries.

"So, Indonesia plays an important role in the midst of this very significant change," he stressed.

The state treasurer added that the government's commitment to fix various policies is to be able to carry out the energy transition process in a more renewable direction as well as to restructure the industry so that it can anticipate future transition trends.

He also mentioned that the implementation of CBAM (Carbon Border Adjustment Mechanism), is an instrument imposed on imported products to European Union countries if the production process is deemed to have caused CO2 emissions.

"The application of CBAM will provide opportunities for many countries, including Indonesia, in energy transition if the instrument provides flexibility for developing countries to be able to adapt and at the same time explore their potential in the field of renewable energy," he concluded.