Ministry Of Energy And Mineral Resources Signs LOI Overcoming Climate Change And Support Energy Transition

Signing Letter of Inten (Doc ESDM)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) cooperates with the Agence Francaise de Development (AFD) to carry out the signing of the Letter of Inten (LoI) and the Implementing Agreement (IA). The agreement signed by the Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana with the AFD Country Director Yann Martress has an agreement with cooperation in the field of energy transition.

Dadan said that the partnership between the Ministry of Energy and Mineral Resources and AFD marks an important milestone in the collective efforts of Indonesia-France which has become a partner in overcoming the challenges of climate change and the transition to a sustainable energy future.

"As a country that is very vulnerable to the impact of climate change, Indonesia realizes the urgent need to reduce greenhouse gas emissions, diversify energy, and accelerate energy transition. To achieve these ambitious goals, it is hoped that collaboration with global partners will allow Indonesia to access cutting-edge energy technology, financial resources in energy transition financing, and increase in technical expertise," he said in a statement to the media quoted on Saturday, November 2.

Dadan further explained that AFD has expertise in sustainable development and green financing in the initiation of AFD supports Indonesia to achieve a sustainable energy transition, as well as the European Union which has supported Indonesia's efforts to transition energy and provide technical support to improve the competence of Human Resources (HR) in achieving the Net Zero Emission (NZE) target.

AFD Country Director, Yann Martress, said that this cooperation program aims to mainstream the concept of energy transition in various policy initiatives, as well as ensure alignment with priority energy transition in Indonesia.

"The signing of this agreement marks a long-term partnership in supporting Indonesia's ambition to achieve NZE, and reaffirms its commitment to work together towards a more environmentally friendly and more resilient energy sector in Indonesia, as well as answering social, environmental and economic challenges," he said.

The Ambassador of the European Union to Indonesia and Brunei, Denis Chaibi, said that the European Union is happy to provide AFD grants to the Ministry of Energy and Mineral Resources to make a green and clean transition in Indonesia, which has large natural resources, such as nickel reserves and large geothermal potential.

"With this potential, Indonesia is a key player in the world green transition. We are very happy to be partnering with Indonesia and the AFD in this effort," he said.

Meanwhile, the Deputy for French Ambassador to Indonesia, Laurent Legodic, revealed that this cooperation between Indonesia and France can take advantage of the advantages of each country to lead to a sustainable and fair energy future.

"By increasing cooperation in energy transition, we can not only encourage technological advances but also significant economic growth, job creation, and energy security," said Laurent.

To note, LoI and IA between the Ministry of Energy and AFD include cooperation in the form of energy transition reforms within the framework of the Policy Based Loan Affordable and Sustainable Energy Transition (PBL ASSET) Program and roadmaps towards NZE; Study and training for critical minerals; Implementation of the Environmental and Social Governance Framework (ESG) at the Ministry of Energy and Mineral Resources; As well as other fields of jointly approved cooperation between the two parties.