France Allocates 500 Million Euro Support for Indonesia’s Energy Transition

JAKARTA, KOMPAS.com – Indonesia is expected to get 500 million euro of funding commitment from France to support energy transition projects in the country.

“I really appreciate France’s commitment to providing funding in support of energy transition projects worth 500 million euro in Indonesia,” said Indonesia’s Foreign Minister Retno Marsudi after attending a bilateral meeting with her French counterpart Jean-Yves Le Drian in Jakarta as quoted by Antara state news agency as saying on Wednesday, November 24.

Retno said the cooperation would be signed by officials from the French government, the French Development Agency (AFD), Indonesia’s Coordinating Ministry for Maritime Affairs and Investment, Indonesia’s state electricity company Perusahaan Listrik Negara (PLN).

She said Indonesia is seeking collaboration to speed up the energy transition, which is also a priority for Indonesia’s G20 Presidency next year.

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“The energy transition is not an option, but a necessity. Therefore, collaboration is needed to support the transition, including through investment and technology transfer,” she said.

Still, in the same place, French Foreign Minister Jean-Yves Le Drian said that his party agreed on the commitment to support the projects on green and renewable energy.

“In support of Indonesia’s energy transition, we commit to provide fund worth 500 million euro through AFD,” Le Drian said.

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Previously, the World Bank has suggested Indonesia initiate and accelerate the energy transition by asking for support from the international community in the form of investment or knowledge transfer from more experienced countries.

“It is important to attract investment from the private sector and financial assistance through bilateral cooperation. This transition requires a lot [of support]. It is the time for Indonesia to get investors to facilitate technology transfer and cooperation,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste.

“Technical assistance and advice on policy is the first step. We can learn from various countries in the world,” she said.

(Writer: Rakhmat Nur Hakim | Editor: Rakhmat Nur Hakim)

Source: https://nasional.kompas.com/read/2021/11/25/01054821/indonesia-akan-terima-komitmen-pendanaan-rp-8-triliun-dari-perancis-untuk.