Jakarta, November 8,2024 – President Prabowo Subianto made his first state visit to Beijing, China, on November 8-10, 2024, at the invitation of President Xi Jinping. The Institute for Essential Services Reform (IESR) sees this visit as an opportunity to strengthen South-South cooperation to promote green economic development, climate action and energy transition amid global instability.
The Executive Director of IESR, Fabby Tumiwa said that President Prabowo’s visit should be utilized by Indonesia to strengthen collaboration with China to support low-carbon energy transition, green investment, technology transfer and clean energy technology industry development in Indonesia. Fabby said that with the advantages of technological mastery and the largest renewable energy capacity in the world, China could become Indonesia’s strategic partner in strengthening cooperation in three sectors, namely, renewable energy infrastructure investment and energy storage, manufacturing and supply chain of clean energy technology, and industrial decarbonization, including low-carbon mineral processing.
“China has shown rapid progress in developing renewable energy, whether solar, wind or energy storage. Indonesia can build cooperation that enables technology transfer that supports innovation and efficiency in the renewable energy sector, as well as investment in clean energy projects in Indonesia,” Fabby said.
IESR emphasizes that energy transition is not just an option, but a necessity to achieve national energy independence, while reducing emissions from the energy sector and achieving sustainable economic growth. The combination of renewable energy development, investment in renewable energy projects, and emission reduction in the energy sector, will support the achievement of the eight percent economic growth vision under Prabowo’s leadership.
In order to increase the amount of renewable energy investment, IESR encourages the Prabowo government to create an investment climate that supports the entry of renewable energy investment, one of which is by setting firm national targets, followed by improving the policy and regulatory framework, improving the licensing process and electricity tariffs to make the investment more bankable. In addition, Indonesia can also seek concessional funding support from China to support the implementation of the Just Energy Transition Partnership (JETP) plan and the National Electricity General Plan (RUKN).
“China’s support for JETP will open up opportunities for China to deepen economic relations with developing countries that have an energy transition agenda. On the other hand, Indonesia, which is still among the developing countries, can accelerate the development of renewable energy projects with adequate funding from China,” Fabby added.
IESR hopes that President Prabowo can utilize the meeting with leaders and investors in China to garner support for a just energy transition. A just energy transition should prioritize inclusive and equitable development, taking into account its impact on local communities, the environment, and the national economy.
