Indonesia catalyzes US$30 billion for sustainability projects

Opening the Tri Hita Karana (THK) Forum 2022, a sustainability side event to the B20 and the G20 Leaders’ Summit, Luhut B. Pandjaitan, coordinating minister of maritime and investment affairs stated: “Indonesia’s commitment to climate change is there and very strong. 

“However, we are facing a financial gap to accelerate the achievement of SDGs. Thus, blended finance is so important to finance so many climate projects. The Government of Indonesia is currently finalizing the Just Energy Transition Partnership (JETP), including collaboration for early retirement of coal power plants and move towards renewable energy.” 

The THK Forum announced that it had catalyzed over US$30 billion worth of pledges, projects and initiatives for the UN Sustainable Development Goals, including clean energy, avoided deforestation, ecosystem restoration, marine protection, circular waste management and human health. 

These initiatives largely prioritized:

  • Accelerating investment in Indonesia’s just energy transition
  • Scaling finance for sustainable infrastructure and waste management
  • Mobilizing capital for nature-based solutions – especially oceans, forests and regenerative food systems

One of the major announcements was an innovative agreement between PLN (Indonesia’s state- owned utility) and Amazon for 210 megawatts (MW) of renewable energy across four utility-scale solar projects in Indonesia. This is also the first time a corporate will be able to access utility-scale and new solar projects in Indonesia. 

The four solar projects will be located in Bali and Java on the Java-Madura-Bali grid. Amazon’s commitment to be the off-taker is a key enabler for these projects. PLN plan to introduce more green tariff opportunities for other interested corporates, thereby unlocking more corporate renewable energy procurement options in the country.

Michael Punke, Global Vice President for Public Policy, Amazon Web Services (AWS) added, “We all know that climate challenges cannot be solved in isolation by governments, the private sector, or NGOs. 

“It’s going to take all of us collaborating, sharing ambition and building expertise together. This is why events like this one, and organizations like the THK Forum, are so important, as they bring together a wide range of stakeholders to share knowledge and best practices to drive collaboration.” 

Darmawan Prasodjo, President Director PT. PLN said that “The reason we need to accelerate the transition is because we need to live in a world where cheap energy is clean. And clean energy is cheap.”

Another announcement was the launch of the “Blue Halo S” platform, a new model for ocean conservation and fisheries management in Indonesia, and is the first ever integrated marine protection and sustainable fishery management approach designed to fund itself over time. 

“There is a critical need to conserve ocean ecosystems and biodiversity while building a thriving and more sustainable livelihood opportunities for local communities. Blue Halo S approach serves as a blueprint for enabling these things to thrive together,” said M. Sanjayan, chief executive officer, Conservation International. 

Another initiative is Bersih Indonesia program coming from the Alliance to End Plastic Waste (Alliance) who announced a US$36 million commitment to support Indonesia’s national goals to reduce 70 percent ocean plastic pollution by 2025 and achieve near zero leakage by 2040. With this commitment, the Alliance will support projects across the archipelago including its flagship program, Bersih Indonesia: Eliminasi Sampah Plastik, which has started with Phase One in Malang. 

“Asia has been underperforming the potential of its economy and that is now changing. Asia’s economy today is growing and in a stable condition and can be the destination of capital looking for sustainable Investments. Political will is there and capital providers know this agenda is investable. Blended finance solutions can help move faster,” stated Leong Wai Leng, managing director and regional head APAC, CDPQ Global. 

Photo credit: Lee Kok Leong. Master of Ceremony at opening of THK Forum, November 13.

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