JAKARTA – The government through the Coordinating Minister for the Economy Airlangga Hartarto said that Indonesia plays an important role in determining the future of environmental sustainability on earth.
According to Airlangga, in the G20 Presidency, Indonesia is committed to promoting the energy transition. This effort later became one of the main themes because all countries involved wanted to reach a global agreement in an effort to mitigate the adverse effects of climate change for future generations.
"In the G20 forum, Indonesia will introduce a country scenario to achieve Net Zero Emission (NZE) called the National Grand Energy Strategy (GSEN) which includes a transition plan from fossil energy to new and renewable energy or EBT," he said in an official statement quoted on Thursday, May 26.
Airlangga added that the issue of climate change continues to develop, one of which is caused by the dominant use of fossil fuels, causing greenhouse gas (GHG) emissions in the earth's atmosphere. At the same time, the world is currently in the grip of a food, energy and financial crisis triggered by the turmoil of the conflict in Ukraine.
"It is important that we recognize the situation at hand, and we need to ensure that we balance the current demand for conventional energy, while remaining committed to energy transition efforts," he said.
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Airlangga also revealed that at the end of last year's COP26, Indonesia made a new climate commitment by setting the NZE target in 2060 or earlier.
“The demand and potential for renewable energy in Indonesia is increasing. The data show that Indonesia has a consistent addition of renewable energy in its overall energy mix. This is certainly a positive development in shifting energy use in Indonesia to green energy,” he explained.
Furthermore, Airlangga said that the energy transition would require a large amount of investment. To promote this, Indonesia will play an important role in implementing innovative green and sustainable finance, while ensuring the right investment path.
"Indonesia is also considering preparing innovative schemes in terms of carbon prices, including market and non-market mechanisms," he stressed.
As the issue of the pandemic shifts towards economic recovery after the pandemic, Coordinating Minister Airlangga stated that now is the right moment to jointly take strategic policies for economic recovery and at the same time carry out an energy transition.
"Through the momentum of the G20 Presidency, GCRG, COP26, and others, Indonesia will be in a central position by participating in regulating the energy transition," concluded Coordinating Minister Airlangga.
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