Indonesia has great green energy potential: Asian Investment Bank

Jakarta (Indonesia Window) – Senior Private Sector Operations Specialist at the Asian Infrastructure Investment Bank (AIIB), Ziwei Liao, has stated that Indonesia has great potential in developing green energy.

The development of green energy in Indonesia can be seen through progress in increasing the electrification ratio and meeting the demands for electricity, said Ziwei here, Monday, according to Antara News Agency.

In addition, Indonesia is also firming up its commitments related to decarbonization through a long-term strategy to achieve low-carbon targets and climate resilience.

The target is attained by achieving 43 percent of renewable energy in the national energy mix by 2050, carbon neutrality by 2060 or sooner, as well as peak carbon emissions by 2030.

Ziwei said that to achieve these targets, Indonesia needs more investment in renewable energy, especially from the private sector.

“AIIB hopes to work together with the public and private sectors in Indonesia towards a greener future,” she said.

AIIB has supported Indonesia with a total investment of 2.9 billion U.S. dollars over the last five years and currently has 10 approved projects across various sectors.

One of the approved projects is a telecommunications satellite project in order to provide internet connectivity for around 45 million people in several remote areas in the archipelagic country.

Another project is dam rehabilitation which aims to support Indonesia in enhancing the safety, functionality and management of 140 existing dams.

Recently, the AIIB and the World Bank also agreed to an additional 500 million U.S. dollars to assist Indonesia in preventing, detecting and dealing with the impacts of the COVID-19 pandemic.

Ziwei emphasized that all investments that include energy, urban development and public health services would bridge the gap in funding critical infrastructures in Indonesia. In addition, this investment will also improve national connectivity and increase the welfare of millions of people in the world’s 4th largest populated country.

Ziwei noted that lack of access to energy could detain economic and social opportunities and developments. Therefore, promoting access to affordable and reliable green energy is critical to achieving sustainable economic growth.

“I feel very happy to see energy projects can provide value to local people and know that there are millions of people getting benefits from green energy,” she said.

Reporting by Indonesia Window