Sri Mulyani Invites JBIC To Increase Its Role In Energy Transition Mechanism

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

JAKARTA - Finance Minister Sri Mulyani invited the Japan Bank for International Corporation (JBIC) to increase its role in the energy transition mechanism program (ETM).

Currently, Indonesia is implementing the ETM program with the Asian Development Bank (ADB) and the Just Energy Transition Partnership (JETP), which are coordinated by the United States (US) and Japan.

"I hope that potential cooperation with JBIC will continue, especially to develop renewable energy projects including various JETP projects in PT PLN's long-term energy transition plan such as retiring coal power plants," Sri Mulyani said as quoted by Antara, Monday, May 8.

The discussion on the energy transition mechanism and the continuation of JBIC's support for green financing in Indonesia was held at a bilateral meeting of Sri Mulyani with JBIC Governor Nobumitsu Hayashi in Incheon, South Korea, Thursday, May 4.

Indonesia welcomes every innovative mechanism for climate financing under the ETM and JETP programs for potential projects and concrete financial schemes.

Therefore, Sri Mulyani also appreciated the relationship between Indonesia and JBIC, which has been established through her collaboration with PT Pertamina, PT PLN, and PT Sarana Multi Infrastruktur (SMI).

In the future, JBIC is expected to increase participation in various programs in the green energy sector in the country through collaboration with Pertamina and PLN.

Prior to JBIC, Minister of Finance Sri Mulyani held a series of bilateral meetings in Incheon on May 2-4, 2023 to discuss support for Indonesia's Chairmanship in ASEAN and ASEAN+3 in 2023.

The meeting was held on the sidelines of a series of ADB Annual Sessions and meetings of ASEAN+3 Chair Partners in South Korea.

A number of important figures met by the Minister of Finance were Deputy Prime Minister and Minister of Economics and Finance South Korea Choo Kyungho, Japanese Finance Minister Shunichi Suzuki, Deputy Prime Minister and Finance Minister of Fiji Biman Prasad, and ADB President Masatsugu Asakawa.