Jakarta – The governments of Indonesia and Canada are collaborating through funding of 5.3 billion Canadian dollars allocated to support Indonesia’s sustainable energy transition. The funds are part of Canada’s commitment to support global climate change mitigation projects, including developing renewable energy in Indonesia.
Minister of Energy and Mineral Resources (MEMR) Bahlil Lahadalia in a written statement, Wednesday, December 4, revealed that collaboration with Canada is an important milestone in achieving the national energy transition target.
“This cooperation is not just about investment, but about sharing technology, values and experiences to build a cleaner and more sustainable energy system,” Bahlil said while attending the Energy Transition Roundtable in Jakarta.
According to him, Indonesia faces great challenges in meeting its energy needs as economic growth is targeted to reach 8% in the next few years. “An additional 61 gigawatts of electricity capacity is needed, and 60% of it will come from new renewable energy as stated in the 2025-2033 RUPTL,” he added.
Canada’s Minister of Export Promotion, International Trade and Economic Development, Mary Ng, emphasised that Canada has been a strategic partner in various renewable energy projects in Indonesia.
“We have supported major projects such as the Sarulla geothermal power plant in North Sumatra and wind and solar power plants in South Sulawesi and Lombok,” said Mary Ng.
She also mentioned that Canada is part of the Just Energy Transition Partnership (JETP), which aims to mobilise USD 20 billion in public and private financing to accelerate Indonesia’s energy transition.
Mary Ng added that this cooperation also includes implementing stricter environmental, social, and governance (ESG) standards to ensure the sustainability of energy projects. By signing a Memorandum of Understanding (MoU) between the two countries, this cooperation is expected to accelerate energy transformation in Indonesia.
One of the discussion points in the Energy Transition Roundtable was the opportunity to develop nuclear energy. “Canada is a leader in nuclear technology, and we are interested in exploring this cooperation. With parliamentary approval, nuclear power regulations will be completed by 2025, and initial implementation is targeted for 2032,” Bahlil said.
In addition, Bahlil highlighted Indonesia’s great potential in renewable energy, including hydropower plants. “We have big projects like the Kayan Hydropower Plant in Kalimantan with a capacity of 12 gigawatts and in Papua with 23 gigawatts. This is our energy future,” he explained.
Discussions at the forum also involved several companies from both countries, including PLN, Mind ID, Pertamina, Candu Energy Inc. and Greenwell Energy. Strategic issues such as clean energy technology, green mining, and nuclear energy were the focus of discussion. (Hartatik)
