General – Energy Transition
The Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR) and the Global Energy Alliance for People and Planet (GEAPP) today signed a Memorandum of Understanding (MOU), marking an important step in the execution of Indonesia’s energy transition efforts as it targets net-zero emissions by 2050.
GEAPP is an alliance of 19 partners led by philanthropies Rockefeller Foundation, IKEA Foundation and Bezos Earth Fund and include multilateral and development finance institutions and governments working in partnership with developing and emerging economies to accelerate green energy transitions.
The MoU was witnessed by Minister of Energy and Mineral Resources, Arifin Tasrif, and signed by Director General of New Renewable and Energy Conservation, Dadan Kusdiana and Simon Harford, CEO of GEAPP.
The MOU builds on Indonesia’s ambitious energy transition program following commitments made at COP26, and the signing of a Just Energy Transition Partnership (JETP) at the G20 meeting in November 2022 with the International Partnership Group (IPG), which includes the governments of the US, Japan, Canada, the UK, and the EU.
Indonesia has the world’s fourth largest population which, combined with forecasted economic growth, is expected to increase the country’s energy use three times by 2050. At the same time, Indonesia has a net-zero emission goal of 2050, meaning its energy transition is key to achieving its emission objectives.
The MOU with GEAPP sets out a practical framework of cooperation to realise these commitments and accelerate Indonesia’s move away from fossil fuels. Working alongside the Ministry of Energy and Mineral Resources, GEAPP will support the advancement of Indonesia’s JETP plan, by delivering capacity building and knowledge sharing, and supporting analysis into the acceleration of coal decommissioning.
During the press conference after the MoU signing, Director General Dadan Kusdiana said: “The purpose of this partnership with GEAPP is to help accelerate the energy transition program in Indonesia so that the people of Indonesia can gain access to clean and affordable electricity. GEAPP is working with the government of Indonesia to support the JETP program. Currently they are supporting the coal early retirement program by appointing IESR to develop roadmap. They plan to support the development of a de-dieselization program and industrial decarbonization.”
Simon Harford, CEO of GEAPP commented, “Indonesia has shown great foresight in its commitment to a just energy transition but is acutely aware that this transformation must be for the greater good of its population – driving not just clean energy but inspiring new livelihoods and sustainable economic growth. The government is also realistic about the international support, investment and technology this shift will require. GEAPP is privileged to support Indonesia’s goals and this MOU reflects our commitment to work at scale and pace to ensure an equitable and effective outcome for all.”
Currently the Asia-Pacific region accounts for almost 80% of global coal consumption and 77.3% of production. MoUs signal mutual understanding and shared goals and represent an important step in GEAPP’s mission to catalyse and scale just energy transitions in South East Asia, and worldwide, as outlined at COP27.
Indonesia is the second country in South East Asia to collaborate with GEAPP on its just energy transition during 2023 with a set of three MoUs signed with the Vietnamese Government in February.