Indonesia and the United Kingdom (UK) have agreed to extend the MENTARI Energy Transition programme. In a statement, the Indonesian Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif disclosed this.
MENTARI (Menuju Transisi Energi Rendah Karbon Indonesia) is a partnership between the governments of Indonesia and the UK to promote the uptake of low-carbon energy, supporting Indonesia’s just energy transition. The programme was launched in 2020 and is led by the British Embassy in Jakarta and Indonesia’s Ministry of Energy and Mineral Resources.
Aimed at enhancing the planning and procurement of renewable energy, the programme was initially scheduled to end in 2024, but it will now be extended until 2027.
“The UK is committed to increasing support for Indonesia’s net zero emission (NZE) target achievement,” Tasrif noted in a recent statement.
“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.
He further said that 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 invited more international partners to support the country’s energy transition rapidly and effectively.
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. Speaking at the same event, UK Minister of State for Energy Security and Net Zero, Graham Stuart, said that Indonesia could 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 programme 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 implementing renewable energy practices.
It may be noted that Mentari supports the state-owned infrastructure financing company PT Sarana Multi Infrastructure (SMI) in renewable energy projects by reducing funding risks and increasing its bankability. The programme is further expected to encourage SMI to increase its portfolio of renewable energy projects from 8.3 percent to 15 percent.