Bahlil Staff Calls Technology Transfer Important For Cheap Energy Transition

Special Staff to the Ministry of Investment/Investment Coordinating Agency (BKPM) M Pradana Indraputra. (Photo: Doc. ANTARA)

JAKARTA - Special Staff to the Ministry of Investment/Investment Coordinating Agency (BKPM) M Pradana Indraputra said that technology transfer is important to support the energy transition that is cheap or more affordable for developing countries.

"Technological transfer is very important to make clean energy economically affordable," said Pradana, quoted from ANTARA, Thursday, May 16.

Citing the World Bank and Our World in Data, Pradana explained that the eight largest economies, which include 30 percent of the world's population, have contributed 54 percent of total greenhouse gas emissions from 1998 to 2022.

Meanwhile, he continued, 70 percent of the other world's population, most of which are developing countries, must bear the same burden caused by the 8 countries.

In this regard, Pradana emphasized that in collaboration between countries, treating all countries in the same way is wrong, because each country has different capacities, capabilities, and financial resources.

"We must treat every country according to its needs and strength, ensure justice and equality," he said.

According to him, developed countries that have historically contributed more to emissions must support developing countries and assist developing countries in achieving progress at the same speed.

"This is the fundamental basis of cooperation between countries," said Pradana.

According to Pradana, the Indonesian government must also evolve from just a regulator, to a facilitator and matchmaker.

He explained that the Ministry of Investment in Indonesia has the authority to provide fiscal incentives, such as tax holidays and allowances.

The clean energy transition is one of the eligible categories to receive this incentive. We can offer tax exemptions to companies for up to 20 years. We also plan to expand this incentive to all sustainable practices, not only clean energy," he also said.

This holistic approach is what he believes is an environmentally friendly industrial and financial policy.

"Indonesia is ready to cooperate with other countries in this effort," said Pradana.