Jakarta – President Joko Widodo (Jokowi) sharply criticised the energy transition funding provided by developed countries, which is intended to encourage the reduction of fossil energy instead will increase the burden on developing countries.
President Jokowi, in a public lecture at Stanford University, United States, on Friday, November 17, said that most of the energy transition funding assistance is in the form of loans from commercial banks.
“We all know that until now, climate finance is still business as usual, like commercial banks. It should be constructive, not in the form of debt that only adds to the burden of developing and poor countries. … The question is whether countries commit to taking responsibility and a role,” he said, adding that the world is now sick with climate change, and energy transition is urgent.
According to President Jokowi, developing countries, including Indonesia, need the help of significant investments and technology transfers from developed countries to realise the energy transition. However, he highlighted that this collaboration is often challenging and complex for developing countries.
The President also emphasised Indonesia’s commitment to the energy transition, stating that this effort will produce affordable energy for the people. “For Indonesia, there is no need to doubt and no need to question our commitment; Indonesia walks the talks, not talks the talks,” Jokowi exclaimed.
He emphasised that Indonesia’s commitment is not just rhetoric but has been supported by domestic actions, and informed that Indonesia succeeded in reducing emissions by 91.5 million tons without funding assistance from developed countries.
In 2022, the deforestation rate was reduced to 104 thousand hectares, forest areas were rehabilitated by 77 thousand hectares, and mangrove forests were restored by 34 thousand hectares in just one year, the President said. “But I say everywhere, every time I meet investors, both Indonesia and other developing countries, funding and technology transfer are always a big challenge,” he said. (Hartatik)
Banner photo: President Joko Widodo at the ABAC ASEAN Caucus Day event held at the Four Seasons Hotel, San Francisco (Source: Laily Rachev/Press Bureau of the Presidential Secretariat)