Minister of Energy and Mineral Resources Arifin Tasrif, said that Net Zero Emissions (NZE) can only be achieved through technological advances, encouraging innovation, and constant improvement.
“More than that, the energy transition also requires strong commitment,” emphasized the Minister of Energy and Mineral Resources in a panel session at the Indonesian Pavilion which was held in Davos, Switzerland, January 16-20 2023, on the 2023 World Economic Forum (WEF) agenda. Previously, he delivered his opening speech from the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan.
In terms of technological progress, Arifin gave an example, sophisticated technology is needed to develop new and renewable energy. “For example, storage technology systems, which are growing rapidly in the power generation and transportation sectors,” said Arifin.
Arifin further said, in the NZE Indonesia roadmap, more than 56 Giga Watt (GW) Battery Energy Storage Systems (BESS) and hundreds of millions of electric vehicles will operate in 2060.
“This opens up a huge potential space for investment. More than USD 40 billion in funding is needed for this program,” said Arifin, in front of an audience from various global and national companies who took part in this session.
Another example is that solar PV technology can increase efficiency to produce a greater power output. “We plan to build 420 GW of solar PV which will be installed in 2060 with an investment requirement of no less than USD 160 billion,” said Arifin.
Arifin admitted that Indonesia’s journey to reach the NZE target would cost a lot. “A very large investment fund is needed, more than USD 1 trillion until 2060. The need for funds is even greater when coal-fired power plants are stopped more quickly and replaced with EBT electricity.