Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, offers solutions to attract investments aimed at supporting energy transition for ASEAN nations.
“Sustainable energy financing is urgently needed, and this can be achieved through mixed funding, cooperation between government and business entities, and international funding,” he said on the sidelines of the ASEAN Energy Financing Forum on Aug. 22.
The minister citied a report from the International Renewable Energy Agency, which noted that ASEAN countries need financing worth US$29 trillion until 2050 to implement energy transition, with a 100% renewable energy scheme.
He elaborated that the investment will be used for the construction of renewable energy generators, domestic and international distribution transmission, storage of biofuel supplies, charging stations for electric vehicles, as well as labor and operational costs.
However, with this large fund, he suggested that the budget could come not only from the government but also from partnerships with private investors and industry.
According to Tasrif, the government is striving to provide incentives, policy frameworks, and transparent investment procedures for investors to encourage private investment.
He also mentioned that energy transition requires the application of clean and low-carbon energy technologies, one of which is the carbon capture, utilization, and storage (CCS/CCUS).
The department had previously issued regulation on the Implementation of CCS and CCUS in upstream oil and gas business activities. The regulation aims to support the performance of the upstream oil and gas sector, achieving low carbon emissions while increasing production.
Tasrif said that Indonesia has a potential of around 12 million tons of CO2 for CCS/CCUS. Now there are 15 projects being studied in collaboration with oil and gas companies.
He also noted that ASEAN members had agreed on the importance of developing sustainable energy in dealing with climate change.
“I believe strengthening partnerships among ASEAN countries as well as between governments and industry will enhance energy security and clean energy development towards carbon neutrality,” he said.