The ETM Platform under the Finance Ministry, through PT Sarana Multi Infrastruktur (SMI) and the Asian Development Bank (ADB), is a clear example that the country has taken steps to attract more investment and create various schemes of funding opport
The G20 Energy Transition Working Group (ETWG) is expected to find breakthroughs in technology and financing, and discuss the best models for mobilizing public and private financing for the renewable energy transition before the G20 Summit.
ETWG chairman Yudo Dwinanda Priaadi made the remarks during a series of seminars on “Unlocking Innovative Financing Schemes and Islamic Finance to Accelerate a Just Energy Transition in Emerging Economies” organized by the G20 ETWG and T20 Indonesia.
"Opening and capturing financing opportunities will be very important for Indonesia in expanding its accessibility and inclusiveness to create a sustainable energy transition," Priaadi said in an official statement on Friday.
ETWG is one of the working groups of the G20 that focuses on energy security, access, efficiency, and the transition to lower-carbon energy systems.
G20 is an international forum comprising 19 countries and the European Union that work together to handle major issues. Indonesia is holding the presidency of the grouping this year.
There are three main energy transition issues that are being discussed at the meeting, namely accessibility, technology, and financing.
Chairman of the board of commissioners of the Financial Services Authority (OJK), Mahendra Siregar, said that OJK is committed to promoting sustainable finance to ensure a smooth transition to a low-carbon economy.
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"OJK supports the government to realize the commitments in the Paris Agreement towards net-zero emissions by 2050 by issuing a number of sustainable financing road maps since 2015, and the second phase, which will be completed in the 2021–2025 period," Siregar informed.
In terms of the framework, energy transition priorities will be accommodated through the Energy Transition Mechanism (ETM) launched by the Ministry of Finance last year.
ETM is a framework for providing the necessary financing to accelerate the national energy transition by mobilizing commercial and non-commercial funding sources in a sustainable manner.
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The platform also serves to enable improvements in Indonesia's energy infrastructure and accelerate the clean energy transition to meet the net-zero emissions targets in a fair and affordable way.
CEO of Climateworks Center, Anna Skarbek, who was a partner in organizing the seminar, said that the momentum for financing the energy transition in Indonesia is open.
"The ETM Platform under the Finance Ministry, through PT Sarana Multi Infrastruktur (SMI) and the Asian Development Bank (ADB), is a clear example that the country has taken steps to attract more investment and create various schemes of funding opportunities for the energy transition," Skarbek remarked.
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