Jakarta – Australia affirms its commitment to assist Indonesia by setting up a large fund to support the energy transition from coal dependence to clean energy. Australian Ambassador for Climate Change Kristin Tilley emphasised that the investment is not only for Australia’s benefit but also to help other countries in the ASEAN region.
In a press conference on Tuesday, May 7, she said Australia is using their development assistance to facilitate ASEAN’s transition to clean energy, including Indonesia. Tilley explained that Australia wants to see countries in the region move from a fossil-based energy crisis to renewable energy.
Australia’s investment is expected to follow the country’s lead in energy transition and provide financial support to Indonesia. This aims to encourage Indonesia not to rely on coal imports from Australia but to switch to more sustainable energy sources.
However, Tilley acknowledged that each country has different challenges when it comes to energy transition. Nevertheless, Australia believes that Indonesia has great potential to make the transition.
One of the main focuses of Australia’s commitment is to encourage private sector investment in energy in Indonesia. Steve Scott, Australian Chargé d’Affaires to Indonesia, explained that through the Australia-Indonesia Climate and Infrastructure Partnership (KINETIK), Australia has provided 200 million Australian dollars to support Indonesia’s energy transition.
KINETIK will focus on increasing investment in the energy transition by supporting policy and regulatory reforms in Indonesia. The program will also provide access to finance for climate-focused small and medium-sized enterprises and incentivize investment in large-scale green infrastructure projects. (Hartatik)
