Jakarta – Australia and Indonesia have signed an important agreement to drive the transition to green energy and achieve net zero targets through the Australia-Indonesia Partnership on Climate, Renewable Energy and Infrastructure (KINETIK), according to a press statement from the Australian Embassy to Indonesia.
Australia will disburse net zero transition investments in Indonesia using blended funding, combining public and private capital to accelerate investment in the renewable energy, energy efficiency and electric mobility sectors, focusing on Indonesia’s small and medium-sized enterprises (MSMEs).
Australian Ambassador to Indonesia Penny Williams stated that the blended finance investment will strengthen the economic partnership between the two countries and help achieve the net zero target.
With this collaboration, Indonesia hopes to make further strides in the transition to green energy. At the same time, Australia contributes to climate change mitigation efforts in the Southeast Asian region.
The blended finance is part of Australia’s Economic Strategy for Southeast Asia, which aims to increase Australia’s investment in the region, including in Indonesia. 1 million Australian dollars (Rp 10 billion) will be invested in the Southeast Asia Clean Energy Fund.
Convergence Blended Finance CEO Joan Larrea welcomed Australia’s adoption of a blended finance approach to meet Indonesia’s net zero target. This Australian blended finance investment is the first of its kind in Indonesia.
“Australia’s investment will spur MSME growth in renewable energy generation and help Indonesia build more green infrastructure,” Larrea said on Monday, April 22. (Hartatik)
