Jakarta – The European Union supports Indonesia in accelerating a sustainable energy transition through grants for critical mineral studies, Environmental and Social Governance (ESG) frameworks, and expert training. The grant is channelled through cooperation between the Ministry of Energy and Mineral Resources (MEMR) and Agence Francaise de Development (AFD), marked by the signing of a Letter of Intent (LoI) and Implementing Agreement (IA) in Jakarta.
MEMR Secretary General Dadan Kusdiana emphasised that this collaboration is an important milestone for Indonesia in accelerating the achievement of the Net Zero Emission (NZE) target and realizing a greener energy sector.
“As a country prone to the impacts of climate change, Indonesia needs collaboration to gain access to cutting-edge energy technology and green financing to accelerate the energy transition,” Dadan said in an official statement Friday, November 1.
He also appreciated the European Union and AFD’s commitment to supporting Indonesia with grants and financing that strengthen green transition efforts in various sectors.
The EU Ambassador to Indonesia and Brunei, Denis Chaibi, revealed that the EU views Indonesia as a strategic partner in global efforts towards a sustainable energy future. With abundant natural resources, such as large nickel reserves, Indonesia has an essential position in the supply chain of critical minerals that support clean energy production.
“The European Union is proud to partner with Indonesia to make the country a leader in the world’s green transition,” Chaibi said.
According to him, the grant will support critical studies needed to explore Indonesia’s mineral potential, including logistics and environmental standards in their utilization.
AFD Director in Indonesia, Yann Mattress, emphasised the importance of policy frameworks and technical training in a sustainable energy transition.
“This partnership confirms our commitment to support Indonesia towards cleaner energy while mitigating the environmental and social impacts that may arise,” Mattress said.
According to him, implementing a strong Environmental and Social Governance (ESG) framework and supporting policies that align with Indonesia’s green energy vision are priorities in this cooperation.
Laurent Legodec, Deputy Ambassador of France to Indonesia, added that this cross-border collaboration also opens up opportunities for sustainable economic development and job creation.
“Collaboration between Indonesia and France is a strategic step in encouraging technological progress, economic growth, and creating equitable energy security,” Legodec said.
This cooperation covers several main aspects, namely the energy transition reform program through the Policy Based Loan Affordable and Sustainable Energy Transition (PBL ASET), studies and training for the development of critical minerals needed in clean energy, ESG implementation, and additional aspects that are mutually agreed upon.
AFD and the EU hope this support will be part of a long-term solution to climate change and improve Indonesia’s competitiveness in the global energy sector. (Hartatik)
