UNDP, Ministry of Marine and Investment Affairs Launch Initiative to Harness Green Investment Opportunities for Energy Transition

April 11, 2023

The United Nations Development Programme (UNDP) and Indonesia’s Coordinating Ministry of Marine and Investment Affairs today kicked off the “Energy Transition Investment Roundtable Discussion Series,” a joint initiative, funded by the Government of Japan, designed to support Indonesia’s efforts to harness green investment opportunities for just energy transition.

Jakarta, April 10, 2023 —The United Nations Development Programme (UNDP) and Indonesia’s Coordinating Ministry of Marine and Investment Affairs today kicked off the “Energy Transition Investment Roundtable Discussion Series,” a joint initiative, funded by the Government of Japan, designed to support Indonesia’s efforts to harness green investment opportunities for just energy transition. 

The series, taking the form of four roundtable events throughout 2023, will focus on the concerns and recommended action from stakeholders towards a just energy transition and its potential social, environmental and economic benefits. Entities operating in energy-intensive industries, including power, oil and gas, cement, and fertilizer, and transport sector associations, Indonesia’s Chamber of Commerce, national and international financing institutions, energy research institutes, and development partners, are slated to participate. 

By facilitating investment policy discussions, the initiative aims to mobilize capital for sustainable solutions and ensure active participation of all stakeholders including the private sector, financers, decision makers, think tanks, civil society organizations and development partners. It is estimated that USD 90 billion is needed annually to meet Net-Zero emissions targets by 2060 as part of efforts to reduce up to 327.9 million tons of carbon emissions. 

In opening remarks, Resident Representative of UNDP Indonesia, Mr. Norimasa Shimomura acknowledged the government’s commitment to meeting the Net-Zero Emissions target by 2060 and reiterated the joint effort. "To harness opportunities from the energy transition, we need policymakers, civil society, the private sector, investors and development partners to collaborate more closely to promote investment, scale-up initiatives that work, advance clean energy technologies, and support research that informs policy responses,” he said.

“With the support of the Government of Japan, UNDP is happy to work with the Coordinating Ministry of Maritime and Investment Affairs, and the Ministry of Energy and Mineral Resources to achieve the country’s Net-Zero targets towards a just energy transition,” Mr. Shimomura added. 

In his keynote address, Coordinating Minister of Maritime and Investment Affairs, H.E. Mr. Luhut Binsar Pandjaitan acknowledged Indonesia’s vast natural resources, and noted that achieving the Net-Zero target ahead of the 2060 deadline is possible. “Indonesia has rich natural resources and unlimited renewable resources. Working together, we can provide social, economic and environmental benefits. It is important that we manage these resources effectively; then, we can play a significant role in the global energy transition movement,” he said.

Echoing his words, Ambassador of Japan to Indonesia, H.E. Mr. Kenji Kanasugi highlighted a recently launched initiative between the Governments of Japan and Indonesia, Asia Zero Emission Community (AZEC). “We need to pursue transition from fossil fuel power sources to renewable energy in a gradual and realistic manner,” he said. “In this context investment towards green energy is essential but at the same time it creates promising opportunities. When we launched AZEC, Japan and Indonesia discussed promoting energy transition towards the goal of net-zero without compromising economic development,” Mr. Kanasugi added. 

Also attending the event was Secretary General of the Ministry of Energy and Mineral resources, Mr. Rida Mulyana, who stated “Additional funds will support training for workers as they transition from the mining industry to renewable energy; these funds will also support social protection measures,” he said, speaking on behalf of the Minister of Energy, H.E. Arifin Tasrif.

Indonesia has committed to meeting the Net Zero Emissions target by 2060 and has pledged to mobilize USD 20 billion for its low carbon investment plan under the Just Energy Transition Partnership (JETP).

 

MEDIA CONTACTS
UNDP Indonesia Senior Adviser for Renewable Energy, Verania Andria, verania.andria@undp.org
UNDP Indonesia Communication and Advocacy Specialist, Ranjit Jose, ranjit.jose@undp.org