Facing The Challenges Of Climate Change, Indonesia And Australia Strengthen Cooperation In The Energy Sector

Photo: Doc. Coordinating Ministry for the Economy

JAKARTA - Indonesia and Australia continue to strengthen cooperation in the field of energy transition through the Partnership program for Climate, Renewable Energy and Infrastructure (KINETIK) by signing the Exchange of Letters of the Australian Indonesian Partnership Program for the Economy (Prospera).

The Australian government has allocated a grant of up to 200 million US dollars for the KINETIK program that will focus on mutually strengthening pillars.

Meanwhile, the KINETIK program is a follow-up to the Australian-Indonesia Climate and Infrastructure Partnership (CIP) agreement announced by Indonesian President Joko Widodo and Australian Prime Minister Anthony Albanese in Indonesia-Australia Annual Leaders Meeting 2022.

The signing of the Exchange of Letters Prospera was carried out by the Deputy for International Economic Cooperation Coordination at the Coordinating Ministry for Economic Affairs, Edi Prio Pambudi, together with the Australian Ambassador to Indonesia Penny Williams.

Deputy for Coordination of International Economic Cooperation of the Coordinating Ministry for Economic Affairs Edi Prio Pambudi conveyed that this agreement is a continuation of the economic development collaboration between Indonesia and Australia which has been running for more than two decades and highlights the collaboration between the two countries in the energy transition.

"Both countries are committed to implementing a KINETIK Program that will strengthen partnerships between the two countries, attract more private investment in renewable energy and environmentally friendly industries in Indonesia, and produce various concrete projects for Indonesia," he said in his statement, Friday, July 26.

Edi said the KINETIK program encourages increased investment in the energy transition by supporting policy reforms and regulations implemented by Indonesia.

In addition, the KINETIK program opens access to financing for small and medium enterprises that focus on climate through the Australian Development Investments, as well as providing incentives for investment in large-scale green infrastructure projects.

According to Edi, the KINETIK program also encourages an equivalent energy transition where women, people with disabilities, and marginalized communities can participate and benefit from the shift to zero carbon emissions.

Australian Ambassador to Indonesia Penny Williams said that Prospera is an important element in strengthening bilateral relations between Indonesia and Australia.

"Prospera is not only a symbol of close cooperation between the two countries, but also a solid foundation for more strategic collaboration between Government Institutions in Indonesia and Australia, especially in the field of energy and climate transition," he explained.

With the implementation of one of the pillars of KINETIK, Prospera partnered with the State Electricity Company, the Ministry of Environment and Forestry, and the Ministry of Energy and Mineral Resources as a beneficiary institution totaling 32 institutions.

Prospera's support in the implementation of KINETIK will encourage increased investment in the energy transition by supporting policy reforms and regulations implemented by Indonesia.