UK sets aside GBP 200 million for Indonesia’s energy transition

Jakarta—To commemorate 75 years of diplomatic relations between Indonesia and the UK, UK Prime Minister Keir Starmer and Indonesian President Prabowo Subianto announced the UK’s commitment to support Indonesia’s energy transition with a GBP 200 million development fund.

“The relationship between Indonesia and the UK has tremendous opportunities to continue to grow, not only in supporting the economies of both countries but also in accelerating solutions to the climate crisis,” British Ambassador to Indonesia Dominic Jermey said in an official statement Friday, November 22.

The announcement was made during President Prabowo’s official visit to London. The two leaders affirmed their commitment to accelerating climate change action and enhancing trade and investment cooperation.

The UK’s pledged funds will support Indonesia’s energy transition projects. “The UK Government wants to ensure that Indonesia has access to leading green technologies and innovative finance to help realise its energy transition ambitions. This is part of our global responsibility,” Dominic said.

In addition, the cooperation includes establishing the UK-Indonesia Economic Growth Partnership, a new mechanism to strengthen trade and investment relations.

Maritime defence, health and education cooperation

During the visit, the UK and Indonesia also signed a memorandum of understanding between Babcock International and Defend I. The agreement covers the Arrowhead 140 frigate manufacturing program to support Indonesia’s maritime defence fleet.

The project also extends to the fisheries sector, with the formation of a consortium involving the UK industry to build environmentally friendly fishing vessels. The consortium, led by AST Oceanics, will focus on supporting the economic sustainability of Indonesia’s coastal communities.

In health, the UK and Indonesia agreed to a new memorandum of understanding involving Cancer Research UK and the Indonesian Ministry of Health. This cooperation aims to improve cancer research, prevention, and treatment. Meanwhile, in the education sector, the British Council announced a capacity-building program targeted at training up to 180,000 English language teachers across Indonesia.

In addition to direct development funds, the UK government, through UK Export Finance, is also providing loan facilities or credit guarantees worth up to IDR 80 trillion to support priority projects in Indonesia, including green energy and infrastructure initiatives.

“Through these commitments, we hope to deepen the strategic relationship and provide tangible benefits to the people of both countries,” Dominic said.

President Prabowo concluded the visit by expressing hope that this new strategic partnership can strengthen closer cooperation. “Indonesia and the UK have shown that mutually beneficial partnerships can drive mutual progress, both in the fields of economy, energy, and people’s welfare,” President Prabowo said. (Hartatik)

Banner photo: President Prabowo Subianto and his entourage were welcomed by Representative of the United Kingdom Charles Anderson DL and Special Representative of the British Foreign Secretary Adele Taylor MBE, upon arrival at Stansted Airport, London, United Kingdom, on Wednesday, November 20, 2024, at around 08.40 local time. (Photo: BPMI Setpres/Muchlis Jr) ©2024 Cabinet Secretariat of the Republic of Indonesia

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