Jakarta – The Government of Canada confirms its commitment to support Indonesia’s energy transition through a funding scheme worth USD 91.4 million. This support comprises USD 81.4 million in soft loans and an additional USD 10 million in grants. The assistance aims to accelerate Indonesia’s transition to clean and sustainable energy.
Minister of National Development Planning/Head of Bappenas, Rachmat Pambudy, said this cooperation is a strategic step in achieving the net-zero emissions (NZE) target by 2060.
“Support from Canada is limited to funding and includes technology transfer and human resource capacity building. This is clear evidence of the close relationship between the two countries in supporting low-carbon development,” Rachmat said in an official statement at a meeting with Canadian Minister of International Development Ahmed Hussen in Jakarta on Thursday, February 20.
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On the same occasion, Ahmed Hussen emphasised that Canada is ready to share experiences and technologies in carbon management and the development of critical mineral supply chains, including lithium, for the battery industry.
Hussen said that Canada wants to contribute to accelerating the energy transition in Indonesia, ensuring economic growth remains inclusive and sustainable.
In addition to support for the energy transition, Canada is also strengthening cooperation in human resource development. The Ministry of National Development Planning/Bappenas and the Canadian government will continue collaborating with the University of British Columbia on a development planner training program. The program includes joint research, student exchanges, and evidence-based policy development to support Indonesia’s development.
As a follow-up step, the two countries will enhance coordination on various development initiatives, including the 2025 Senior Official Meeting that will take place in Canada. The meeting is expected to strengthen synergies between Indonesia’s national development policies and Canada’s Indo-Pacific strategy and review the implementation of the Indonesia-Canada Action Plan 2022-2025.
Rachmat said that this cooperation reflects the commitment of both countries to building a greener and more sustainable future in line with the Sustainable Development Goals (SDGs).
“We hope that this cooperation will continue to develop with concrete steps aligned with national priorities so that it will have a real impact on society and the environment,” he concluded. (Hartatik)
