16-10-2023 (JAKARTA) Indonesia is looking to forge a partnership with China for renewable energy and infrastructure initiatives as President Joko Widodo prepares to attend the upcoming Belt and Road Forum in Beijing, according to a cabinet minister.
The collaboration with China will run parallel to the Just Energy Transition Partnership (JETP), a $20 billion agreement that Indonesia has with a consortium led by the United States. The JETP aims to support Indonesia in decarbonizing its energy sector, explained Acting Chief Investment Minister Erick Thohir in a recent interview with Reuters.
However, progress in JETP discussions has been slow. Indonesian officials have expressed frustration that Western nations are hesitant to provide funds for the early retirement of coal power plants, while loans offered under the JETP carry high interest rates.
Indonesia, the largest economy in Southeast Asia, has committed to achieving net zero greenhouse gas emissions by 2060, with a major focus on clean energy development.
Erick Thohir highlighted China’s significant advancements in renewable energy and extensive hydropower resources, stating that Indonesia could benefit from learning from their experience. He emphasized that the two countries are currently exploring the possibilities of a partnership.
Next month, Indonesia is expected to unveil its investment plans for the JETP, ahead of the United Nations COP28 climate summit, albeit three months behind the initial target.
Erick Thohir refrained from disclosing specific details of the JETP discussions but emphasized the urgency, stating, “We cannot wait…there hasn’t been any funding as yet.”
He further emphasized that Jakarta remains open to collaborating with any nation willing to assist in achieving Indonesia’s climate goals. However, any cooperation must align with Indonesia’s own vision and priorities.
During the Belt and Road Forum, taking place this week, President Jokowi will showcase the recently launched $7.3 billion “Whoosh” high-speed railway project, spanning 142 kilometers (88.23 miles). The project is financed through loans from China.
At a bilateral meeting with Chinese President Xi Jinping, Jokowi will propose extending the railway an additional 700 kilometers to Surabaya city and hold discussions on trade relations, added Erick Thohir.
Indonesia had previously discussed the railway extension plan with Chinese Premier Li Qiang during Li’s visit to Jakarta in September.
