Indonesia launches country platform for energy transition mechanism

Investment sources of Indonesia’s country platform will come from mixed financing through PT Sarana Multi Infrastructure (PT SMI), including philanthropists, bilateral or multilateral development agencies, and climate finance institutions.

 

Jakarta (Indonesia Window) – Indonesia launched a country platform for the Energy Transition Mechanism (ETM) together with the Asian Development Bank (ADB) and PT Sarana Multi Infrastruktur (PT SMI).

The country platform is a form of Indonesia’s strong commitment in dealing with climate change.

“This launch is very appropriate, especially at the beginning of the G20 Indonesia Presidency meeting,” the Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said at the soft launching of Indonesia’s ETM Country Platform in Nusa Dua area, Badung district, Bali province, on Friday, as quoted from Indonesia’s Antara news agency.

Febrio considered that the launch was an important momentum to encourage all members and other countries to carry out their climate financing commitments with real and implementable initiatives.

The country platform accommodates the holistic approach needed to implement ETM, as well as being a framework that provides the financing needs to accelerate the national energy transition by mobilizing funds from public and private sources in a sustainable manner.

This platform and other related mechanisms will be derived from the broader policy framework on an equitable energy transition to achieve the National Determined Contributions (NDC) and Net-Zero Emissions (NZE) targets.

The platform also welcomes the involvement of all investors, including ADB, the World Bank, the Indonesia National Authority (INA), the Glasgow Financial Alliance for Net Zero (GFANZ) as well as other multilateral development banks, countries, the private sector, and philanthropists.

According to Febrio, the country platform ETM is a model that can be used by other countries.

To ensure its effectiveness, the ETM country platform can be adjusted and adapted based on the local context and needs of each country according to its specifications, priorities and regulations.

Indonesia’s country platform investment sources will come from mixed financing through PT SMI, including philanthropists, bilateral or multilateral development agencies, and climate finance institutions.

Some sources of financing include the Glasgow Financing Alliance for Nett Zero and SDG Indonesia One (SIO).

“The ETM Country platform will be one of the concrete deliverables in the G20 Indonesia Presidency. Indonesia will continue to strive to be an example for other countries and hopes that the same commitment can be implemented by other countries and development partners regionally and globally,” said Febrio.

Reporting by Indonesia Window