Indonesia is looking to build its clean energy capacity and infrastructure projects with the help of China. Indonesia will seek help from China during the upcoming Belt and Road Forum in Beijing.
As per the Cabinet Minister, President Joko Widodo will attend the meeting. As per reports, acting Chief Investment Minister Erick Thohir said that any partnership with China would parallel the Just Energy Transition Partnership (JETP) – a $20 billion deal Indonesia has with a U.S.-led group of countries to help decarbonise its energy sector.
“China has made great strides in renewable energy development and has massive hydropower. So, it would be good to learn from that,” Erick said.
He added that Jakarta is open to working with any nation willing to help it achieve its climate goals and believes in Indonesia’s economic potential, but any cooperation must be on Indonesia’s terms.
“We want this to fit our grand plan, the Indonesia blueprint, not the blueprint of other countries,” Erick said. It is reported that JETP discussions have not been proceeding smoothly. Many senior Indonesian officials have complained that Western countries are reluctant to finance the early retirement of coal power plants and that loans under JETP will carry high interest rates.
Indonesia is set to announce investment plans for JETP next month, ahead of the United Nations COP28 climate summit, three months behind an initial target. Southeast Asia’s largest economy has pledged to reach net zero greenhouse gas emissions by 2060, a large part of which will involve cleaning up its energy sector.