Airlangga Says RI Has 34 Energy Transition Projects Discussed In AZEC

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

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartanto, as Chair of the Steering Committee for the Joint Task Force, chaired a bilateral meeting between the Indonesia-Japan Asia Zero Emission Community (AZEC) Joint Task Force Steering Committee with the Japanese Minister of Economy, Trade and Industry (METI) Saito Ken and the Chairman of the Japan Bank of International Cooperation (JBIC) Board of Directors Tadashi Maeda.

In his presentation, Airlangga revealed that in this second AZEC there were 78 registered energy transition projects originating from all Asian countries and Indonesia to become the country with the list of the most projects in Asia with 34 projects.

Through the forum, six Expert Group Meetings have been held to identify opportunities to find solutions together on investment challenges in the energy transition field. Based on the results of the series of meetings, a number of potential projects categorized in three categories have been identified based on project readiness.

"In category I, there are commercial projects that are ready to be implemented, including the Muara Laboh geothermal Project and the Legok Nangka Waste Power Plant (PLTSa)," said Airlangga, Wednesday, August 21.

Meanwhile, in category II, there are potential projects that are ready to be commercialized but are still in the feasibility study stage, such as the peatland management project and the Java-Sumatra transmission network project.

Then in category III, there are around 74 MoUs and initiatives that need to be identified and studied further.

"The potential for identified investment from this category will be increased back to category II and category I," said Coordinating Minister Airlangga.

Regarding a number of challenges that have emerged in project development, Coordinating Minister Airlangga reiterated Indonesia's commitment to continue to facilitate the debottlenecking process in order to accelerate project implementation.

In addition, Coordinating Minister Airlangga also conveyed his commitment to supporting facilitation for investment in other potential projects such as the production of Crude Coconut Oil (CCO) for Sustainable Fuel Aviation (SFA), geothermal power plants, hydroelectric power plants, green ammonia and hydrogen production. green, capture, utilization, and carbon storage (CCU/CCUS), as well as biomass and other investment potentials.

At the end of the meeting, Coordinating Minister Airlangga expressed his hope that the AZEC cooperation could provide a climate that supports the development of green financing in Indonesia, both through the development of collaborative financial platforms to mobilize domestic and international investments, as well as create innovative financial instruments as well as with effective market-based mechanisms such as through carbon trading and emission trading systems.