Developing Countries Need Financial Support in Energy Transition, Says Jokowi

JAKARTA, KOMPAS.com – Indonesia’s President Joko “Jokowi” Widodo called on developed countries to provide financial support for other countries that face challenges in the energy transition.

“Countries with heavy burdens must be supported and provided with facilities. Developed countries can proceed first while helping others that are still struggling with the funds,” said Jokowi during the S20 High-Level Policy Webinar on Just Energy Transition on Thursday, March 17.

Indonesia currently chairs the Group of 20 major economies, focusing on three main pillars namely global health architecture, sustainable energy transition, and digital transformation.

Jokowi said that every country has unique challenges and needs to transform the energy system. This is because the energy transition is not only a matter of changing the use of fossil fuels but also many aspects. For this reason, he called on all countries, especially the G20 member countries, to resolve the existing challenges.

Also read: Jokowi to G20 Nations: ‘It Is Not the Time for Rivalry’

He hoped that the G20 forum can serve as a bridge between the developing and developed countries to strengthen a just global energy system. “We must build more collaborations to facilitate access to affordable energy services, create technology and provide funds, create consistent and sustainable strategies,” he said.

Three challenges in the energy transition

He told the participants that there are three major challenges in the energy transition. The challenges appear amid wide-open opportunities, ranging from job opportunities for innovation and new economic opportunities.

The first challenge is how to access clean energy. Not all citizens have access to affordable, reliable, and sustainable energy.

The second challenge is how to get funds. He said the transition process requires a huge amount of funds. This is because the energy transition requires new projects, which certainly require new investments. Therefore, it is necessary to explore the right financing mechanism to create a competitive price and not burden the people.

Also read: Indonesia Takes Over G20 Chairmanship from Italy

Meanwhile, the third challenge is dealing with research and technology support. Obviously, the energy transition requires the role of science and technology to produce new technologies that are more efficient and more competitive.

“New, more efficient technologies can reduce costs and increase added value in new and renewable energy industry products,” said the president.

(Writer: Fika Nurul Ulya | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2022/03/17/170440126/jokowi-soal-transisi-energi-negara-dengan-beban-berat-harus-dibantu.