Government Expect All Society Layers Collaboration For Energy Transition Support

Illustration. (Photo: Doc. Antara)

JAKARTA - The government through the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) expects the participation of collaboration of all levels of society in supporting the energy transition program. "The community's living style is also expected to support the energy transition, starting from reducing single-use plastic to using mass transportation or electric vehicles," said Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Fisheries, Rachmat Kaimuddin, at a press conference online Global Future clears (GFF), quoted from Antara, Tuesday 27 September. Rachmat said the government continues to encourage the energy transition through the use of clean energy, along with the target of reducing emissions and Net Zero Emission (carbon neutrality) which is targeted to be achieved by 2060. According to him, the government is trying to accelerate the energy transition, one of which is by increasing the use of electric vehicles in all sectors. In addition to tax incentives, the government will also strive to make the price of electric vehicles more competitive so that it can be reached by the entire community. "The market grows if the demand exists," he said. On the same occasion, Deputy for Investment Planning at the Ministry of Investment/BKPM Indra Darmawan said the government continues to strive so that the energy transition program gets an adequate portion of funding. "There is a financing gap of up to Rp250 trillion per year, at least until 2030 for the cost of transitioning to clean energy. Other funding sources must be sought," said Indra. Indra said the use of energy must continue to be pursued to shift from fossil energy to clean and environmentally friendly energy. The sources of financing carried out for energy transition funding include the issuance of Sukuk or green bonds, blended finance, as well as collaboration with international institutions. In addition, Indonesia also introduced Energy Transitions Mechanism (ETM) in collaboration with the Asian Development Bank (ADB) to seek funding or seek investors for energy transition financing in the country. "This ETM conducts early retirement of coal, according to the long-term plan to Net Zero Emission. Those are efforts to close the gap, we must innovate and collaborate," he said. For information, the Global Future Fellows (GFF) was initiated by the Pijar Foundation in order to encourage energy transition efforts in Indonesia. Raising the theme ”Safeguarding Indonesia’s Energy Transition ”, GFF provides space to exchange knowledge among 36 Indonesian professionals from the public, private, and community sectors about synergistic, strategic and consolidative areas into a joint action plan.