Indonesia president, former UK Prime Minister explore renewable investment in Nusantara


(Photo: Republic of Indonesia Cabinet Secretariat)

Indonesia President Joko Widodo and former British Prime Minister Tony Blair engaged in discussions on 18th regarding investment opportunities in the new capital of Indonesia, Nusantara, for the development of renewable energy and Carbon Capture and Storage (CCS) projects.

Indonesian Minister of Investment, Bahlil Lahadalia, who accompanied Jokowi in the meeting, mentioned that both parties agreed to develop a solar panel facility with a capacity of up to 1.2 GW in Nusantara, and under Blair’s facilitation, the planning and construction will be undertaken by the United Arab Emirates (UAE).

This project is facilitated through Blair’s own “Tony Blair Institute for Global Change” and will involve Indonesia state electricity company (PLN) in its implementation. Bahlil stated, “the authority of this project should be under PLN. After that, we will formulate the regulations.”

In addition to the renewable energy project, they also agreed to implement the project of Carbon Capture and Storage (CCS). According to Presidential Regulation No. 14 of 2024 regarding the implementation of CCS activities, it stipulates that carbon storage is prioritized for domestic producers with a share of 70%, while the remaining 30% is allocated for foreign entities.

Bahlil stated that this initiative is aimed to create a new source of national revenue, “we will provide incentives as much as possible to encourage industry players to invest in Indonesia.”

Tutuka Ariadji, the Director General of Oil and Gas at the Indonesian Ministry of Energy and Mineral Resources, cited data indicating that the country has identified 20 potential sites for carbon storage. The saline aquifers could store 572.77 gigatons, while a potential of 4.85 gigatons in depleted oil and gas reservoirs.

In the meeting, they also discussed collaboration between Indonesia and the Blair Institute in accelerating digital transformation. Azwar Anas, the Minister of State Apparatus Utilization and Bureaucratic Reform highlighted Blair's emphasis on digitalization as the most effective strategy to double the country’s achievements and urged the government to promptly launch INA Digital, Indonesia’s governmental technology platform, for seamless integration of diverse government service systems.

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