Indonesia, UK expand energy transition partnership with £6.5 million new investments


Indonesia and the United Kingdom on August 4th agreed to extend the bilateral collaboration for clean energy transition with £6.5 million in new funding and technical assistance from the UK. The initiative aims to attract investment for renewable energy projects.

Named Mentari, which is the Indonesian acronym for “Towards Indonesia’s Energy and Low Carbon Transition”, this partnership was originally set to expire next year. However, during a visit by UK Energy Security and Net Zero Minister, Graham Stuart, it has been extended until 2027. 

During a meeting with Energy and Mineral Resources Arifin Tasrif in Jakarta, Stuart said that UK companies plan “to bring world-leading innovations in clean energy here along with multi-billion dollar balance sheet”.

He continued, “By extending Mentari, we’re strengthening that partnership yet further as we take on the greatest challenge yet. Not just to cut emissions and increase our energy security, but seize the huge opportunities to turbocharge our economies and spread prosperity at the same time.”

According to Stuart, Mentari has so far supported more than £600 million of investment in low-carbon projects through its brokerage work.

He praised Indonesia’s ambitions for net zero, with the roadmap outlining over 700 GW of renewable energy plans. “It's more than ten times the UK’s capacity for producing electricity,” he said. He suggested Indonesia is already on the way to becoming a global hub for renewable energy investment.

Speaking to reporters after the meeting, Tasrif welcomed the extended Mentari partnership. “The UK has expressed commitment to doubling down its support for Indonesia’s net-zero targets. They have outlined several low-carbon energy projects and conducted a pilot project in eastern Indonesia," he said.

The bilateral partnership has been implemented in the construction of a solar power project in Sumba, West Nusa Tenggara.

In addition to Mentari, the UK government also actively supports Indonesia’s Just Energy Transitions Partnership (JETP) and Joint Economic and Trade Committee (JETCO), he said.

"We can project that this partnership will continue to grow to promote technical cooperation, sustainable trade, and green investment between the two countries,” Tasrif noted.

Indonesia is inviting more international partners to accelerate the energy transition. The country needs $1 trillion until 2060 to transfer energy sources of its entire power plants from coal to renewable energy.

"The financial needs will grow because we plan an early phase-out of coal-fired power plants in the coming years. Therefore, our door is wide open to investment and partnership to achieve the coal phase-out,” Tasrif said.

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