Jakarta (VNA) – Indonesia has created a funding platform for its renewable energy projects, including a pioneering programme toretire coal-fired power plants, and appointed state-owned financing firm PTSarana Multi Infrastruktur (SMI) to manage the funds.
SMI will be responsible for managing the funding andfinancing framework, called the energy transition mechanism (ETM), to achieveIndonesia’s nationally determined contribution (NDC) and net-zero emission targetsby 2030 and 2060, respectively.
The platform can accommodate a holistic approach needed toimplement ETM in Indonesia, said Febrio Nathan Kacaribu, the head of theFinance Ministry's Fiscal Policy Agency (BKF), during the launch of the ETM platformlast week.
SMI’s CEO Edwin Syahruzad said the ETM’s main priority is toend the operation of non-renewable power plants or gradually eliminate coaluse.
Last year, the Asian Development Bank (ADB) and the Governmentof Indonesia announced a new partnership for the development of ETM at the 26th UN Climate Change Conference (COP26) in Glasgow, the UK, as part of an effortto retire coal-fired power plants in Indonesia.
As of April 2022,Indonesia’s State Electricity Company (PLN) had been operating coal-fired powerplants with combined capacity of 32,924 MW, accounting for 45% of the country’stotal installed capacity.
The Indonesian Ministryof Energy and Mineral Resources (EMR) anticipated that Indonesia’s lastcoal-fired power plan will be decommissioned by 2058 and the country will belikely to achieve carbon neutrality by 2060./.
SMI will be responsible for managing the funding andfinancing framework, called the energy transition mechanism (ETM), to achieveIndonesia’s nationally determined contribution (NDC) and net-zero emission targetsby 2030 and 2060, respectively.
The platform can accommodate a holistic approach needed toimplement ETM in Indonesia, said Febrio Nathan Kacaribu, the head of theFinance Ministry's Fiscal Policy Agency (BKF), during the launch of the ETM platformlast week.
SMI’s CEO Edwin Syahruzad said the ETM’s main priority is toend the operation of non-renewable power plants or gradually eliminate coaluse.
Last year, the Asian Development Bank (ADB) and the Governmentof Indonesia announced a new partnership for the development of ETM at the 26th UN Climate Change Conference (COP26) in Glasgow, the UK, as part of an effortto retire coal-fired power plants in Indonesia.
As of April 2022,Indonesia’s State Electricity Company (PLN) had been operating coal-fired powerplants with combined capacity of 32,924 MW, accounting for 45% of the country’stotal installed capacity.
The Indonesian Ministryof Energy and Mineral Resources (EMR) anticipated that Indonesia’s lastcoal-fired power plan will be decommissioned by 2058 and the country will belikely to achieve carbon neutrality by 2060./.
VNA
