Indonesia And UK Extend Low Carbon Energy Partnership To Advance Clean Energy Transition

In a significant move towards combating climate change and promoting renewable energy, the Minister of Energy and Mineral Resources (ESDM) of Indonesia, Arifin Tasrif, and the British Minister of Energy and Net Zero Security, Graham Stuart, jointly launched the extension of the Indonesia-UK Cooperation Program Towards Indonesia’s Low Carbon Energy Transition (MENTARI). This cooperative effort aims to accelerate Indonesia’s Net Zero Emission (NZE) target and enhance the country’s commitment to a low-carbon future.

Initially scheduled to conclude in 2024, the MENTARI program has now been extended to 2027, thanks to the UK’s unwavering support. The UK has also pledged an additional GBP 6.5 million (IDR 135 billion) to maintain and improve the program, further solidifying its dedication to Indonesia’s clean energy goals.

Speaking at the launch event, Minister Arifin highlighted that MENTARI has become a crucial partner, working hand-in-hand with the Ministry of Energy and Mineral Resources to enhance renewable energy planning and procurement. The program is instrumental in developing on-grid and off-grid applications, proposing policies, recommendations, and conducting technical studies. Notably, MENTARI has successfully implemented low-carbon energy projects and pilot initiatives in eastern Indonesia, showcasing the tangible impact of their efforts.

Apart from MENTARI, the UK is actively supporting Indonesia through other vital programs, such as the Just Energy Transitions Partnership (JETP) and the Joint Economic and Trade Committee (JETCO). Both countries anticipate that this growing partnership will foster technical cooperation, sustainable trade, and green investments, reinforcing their commitment to a greener future.

Minister Arifin emphasized that Indonesia is inviting international partners to actively participate in the nation’s swift and effective transition towards clean energy targets. With Indonesia requiring an estimated USD 1 Trillion of investment by 2060 for renewable energy generation and transmission, financial support is essential. The country’s plan includes the early retirement of coal-fired power plants, opening up vast investment opportunities and collaboration prospects.

During the launch, Minister Stuart praised Indonesia’s potential to play a significant role in the clean energy transition in Southeast Asia. With its status as one of the world’s fastest-growing economies and abundant renewable energy prospects, Indonesia is positioning itself as a key player in the global effort to combat climate change. The UK’s expertise and investment are actively supporting Indonesia in this vital energy transformation, as the country aims to achieve net-zero emissions by 2060 or even sooner.

The extension of the MENTARI Low Carbon Energy Partnership is a pivotal moment for Indonesia’s renewable energy development. It is designed to accelerate renewable energy investments, aiding Indonesia’s transition to a green economy. The program aims to realize the vast renewable energy potential in Southeast Asia, benefiting the region’s communities and environment alike.

The MENTARI program has already achieved commendable results, with the inauguration of two solar power systems in Central Sumba, benefitting 200 households. Additionally, MENTARI is facilitating the development of renewable energy projects by PT. SMI, reducing funding risks and increasing bankability. As a result, PT. SMI is projected to increase its renewable energy project portfolio from 8.3% to 15%, further accelerating the country’s clean energy agenda.

With the extension of the MENTARI program, Indonesia and the UK are affirming their joint commitment to a greener, more sustainable future. By aligning their efforts and expertise, these nations are setting an inspiring example for the rest of the world in the fight against climate change and promoting clean energy adoption on a global scale.