Indonesia, UK agree to collaborate on Mentari’s energy transition program
Jakarta, The Gulf Observer: Indonesia and the United Kingdom (UK) have agreed to extend their collaboration on the Mentari energy transition program, according to Indonesian Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.
“The UK is committed to increasing support for Indonesia’s net zero emission (NZE) target achievement,” Tasrif noted in a statement released on Friday.
Mentari is a program aimed at enhancing the planning and procurement of renewable energy. The program was initially scheduled to end in 2024, but it will now be extended until 2027.
“The UK will also provide additional support worth £6.5 million for the continuation of the program,” Tasrif remarked after the launch event of the Mentari program extension in Jakarta.
“They have also explored several low-carbon energy projects and implemented pilot projects in eastern Indonesia,” he stated.
In addition to Mentari, the UK is actively assisting Indonesia through various programs, including the Just Energy Transitions Partnership (JETP) and Joint Economic and Trade Committee (JETCO), according to Tasrif.
“We hope this partnership will continue to grow to promote technical cooperation, sustainable trade, and green investments between the two countries,” he stated.
Tasrif also noted that Indonesia invites more international partners to support the country’s energy transition in a rapid and effective manner.
Indonesia requires an investment of around US$1 trillion until 2060 to develop renewable energy power plants and transmission infrastructure.
The financial needs will increase as Indonesia plans to phase out coal-fired power plants in the coming years.
“Therefore, we open opportunities for investment and cooperation to realize these goals,” Tasrif added.
During the same event, UK Minister of State for Energy Security and Net Zero, Graham Stuart, highlighted that Indonesia can play a significant role in the clean energy transition in Southeast Asia.
“With expertise and investments from the UK, Indonesia is accelerating its transition from coal-based electricity to clean energy to achieve its net zero target by 2060 or earlier,” he remarked.
“This program supports Indonesia’s transition towards a green economy, helping the largest populous country in Southeast Asia realize its renewable energy potential,” Stuart affirmed.
Since 2020, Mentari has successfully established two solar power plants in Central Sumba, East Nusa Tenggara (NTT), to supply energy to 200 households. These two villages serve as a model for the implementation of renewable energy practices.
Mentari also assists the state-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI) in renewable energy projects by reducing funding risks and increasing its bankability. The program will encourage SMI to increase its portfolio of renewable energy projects, from 8.3 percent to 15 percent.
