Indonesia And South Korea Agree On Cooperation On Carbon Emission Reduction

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto and South Korean Trade Minister Inkyo Cheong signed a Memorandum of Understanding on the Implementation of Article 6 of the Paris Agreement. The cooperation agreement was reached on the sidelines of the Indo-Pacific Economic Framework for Prosperity (IPEF) Meeting which took place in Singapore.

Airlangga said that in strengthening the achievement of commitment as stated in the Enhanced Nationally Determined Contribution (ENDC) to reduce carbon emissions by 31.89 percent with its own efforts and up to 43.20 percent with international support, Indonesia seeks to explore cooperation both bilaterally and multilaterally.

Related to this, Airlangga welcomed the initiative of the South Korean Ministry of Trade, Industry and Energy (MOTIE) in establishing bilateral cooperation with Indonesia to implement Article 6 of the Paris Agreement.

Through this collaboration, South Korean companies and Indonesian companies are encouraged to collaborate to develop projects capable of reducing carbon emissions in Indonesia supported by funding subsidies from MOTIE.

In addition, the two countries will also obtain carbon credit through International Transferred Mitigation Outcomes (ITMO) from selected projects that receive subsidies from MOTIE.

"MOTIE has contacted the Coordinating Ministry for the Economy since last year. We approved the cooperation and signed the MoU today," he said in his official statement, Thursday, June 6.

Airlangga explained that the form of cooperation in the MoU also has many similarities with the implementation of JCM that Indonesia has done.

In addition, he also hopes that companies from both countries can immediately collaborate to achieve reducing carbon emissions.

Meanwhile, similar cooperation through the Joint Crediting Mechanism (JCM) scheme between Indonesia and Japan has been since 2013. Currently, there are 55 JCM projects spread across various regions in Indonesia and have contributed significantly to supporting low-carbon development in Indonesia.

Then Airlangga also hopes that the cooperation with South Korea can contribute a lot in encouraging Indonesia's efforts to achieve the Enhanced Nationally Determined Contribution (ENDC) target by 2030 and Net-Zero Emission (NZE) by 2060 or sooner.

Furthermore, Airlangga also said that the cooperation could support sustainable development in Indonesia through increasing green investment and creating green jobs.