In a significant move to bolster Indonesia's shift towards sustainable energy, the French Development Agency (Agence Française de Développement, AFD) has granted €14.7 million to Indonesia. This funding, facilitated through the Indonesia Energy Transition Facility (IETF), aims to expedite the nation's energy transition initiatives.

Commitment to a Greener Future

The Secretary General of Indonesia's Ministry of Energy and Mineral Resources (MEMR), Dadan Kusdiana, expressed gratitude for AFD's support, emphasizing the importance of international collaboration in achieving energy sustainability. He stated, "As a nation deeply vulnerable to the impacts of climate change, Indonesia recognizes the urgent need to reduce greenhouse gas emissions and diversify its energy mix. To achieve these ambitious goals, it is expected that collaboration with global partners will enable Indonesia to access cutting-edge technologies, financial resources, and technical expertise."

Strategic Allocation of Funds

The €14.7 million grant is designated to support various facets of Indonesia's energy transition. Notably, €6.5 million will be managed directly by PT PLN (Persero), Indonesia's state electricity company, to enhance the integration of renewable energy into the national grid. PLN's Director of Finance, Sinthya Roesly, highlighted that the funds will be utilized for project renovations, technical assistance, and ensuring the seamless implementation of projects related to the transmission and distribution of renewable energy.

Focus Areas of the Cooperation Program

The five-year cooperation program between MEMR and AFD, set to commence in 2025, will concentrate on several key areas:

• Decarbonization for Small Islands: Implementing sustainable energy solutions tailored for Indonesia's numerous small islands.
• Green Hydrogen Development: Exploring and promoting the use of green hydrogen as a viable energy source.
• Sustainable Mining of Critical Minerals: Ensuring that the extraction of essential minerals aligns with environmental and sustainability standards.
• Sustainable Production of Bioenergy: Advancing bioenergy initiatives that are both efficient and environmentally friendly.

Strengthening International Partnerships

This collaboration underscores the deepening partnership between Indonesia, France, and the European Union in addressing climate change and promoting sustainable energy practices. Laurent Legodec, Chargé d’affaires a.i. of the French Embassy, remarked, "Identified as a key priority by France and Indonesia, the cooperation on the energy transition can leverage each country's strengths to forge a path towards a sustainable and just energy future."

The European Union Ambassador to Indonesia, H.E. Denis Chaibi, also emphasized Indonesia's pivotal role in the global green transition, noting its strategic location and vast natural resources. He stated, "Indonesia matters. Its strategic location and vast natural resources, including nickel reserves and geothermal energy potential, make it a key player in the global green transition."

A Step Towards Sustainable Energy

This grant represents a significant step in Indonesia's journey towards a more sustainable and resilient energy sector. By leveraging international support and focusing on key areas of development, Indonesia aims to achieve its ambitious energy transition goals, contributing to global efforts in combating climate change.