Business Forum Indonesia-Korea Highlights Clean Energy Transition
- Press release
VIVA – The Embassy of the Republic of Indonesia in Seoul, with the Centre for Strategic and International Studies (CSIS) and Tenggara Strategies celebrate the Business Forum on 50 Years of Indonesia-Korea Relations at the Oakwood Premiere Hotel, Incheon, South Korea. This business forum provides updates and insights on sustainable financing for clean energy transition and infrastructure in Indonesia.
It is known that Indonesia is currently trying to transform into a sustainable economy to achieve its 2045 vision as the fourth-largest economy. Also, the current government policies and incentives to boost closer cooperation between Indonesia and South Korea in the financial sector to support Indonesia’s downstream industry and infrastructure development.
The forum also discussed efforts to implement the Just Energy Transition Partnership (JET-P) and Energy Transition Mechanism (ETM) for a cleaner and greener future as one of the outcomes of Indonesia’s 2022 presidency in the G20.
As information, the forum was held in conjunction with the celebration of the 50th anniversary of the diplomatic relations between Indonesia and Korea with the support of the Ministry of Finance of the Republic of Indonesia, the Nusantara National Capital Authority of the Republic of Indonesia (Otorita IKN), Bank Indonesia, PT PLN, PT Sarana Multi Infrastruktur (SMI) and KB Kookmin Bank.
This time, the business forum takes the theme Developing Closer Friendship and Stronger Partnership through Enhanced Sustainable Financing for Investment in Renewable Energy and Infrastructure Development.
Celebrate Business Forum on 50 years of Indonesia-Korea
- Press release
“I highlight Indonesia’s acceleration efforts on clean energy transition, which is the core and focus of the current Indonesian government policy,” Minister of Finance, Sri Mulyani Indrawati stated in her remarks on May 3, 2023.
She also mentioned that Indonesia launched the Energy Transition Mechanism (ETM) Country Platform during its G20 Presidency in November 2022, with the first ETM Project identified being the retirement of a 660 MW coal-fired power plant in West Java aimed to promote a just and affordable transition in Indonesia and beyond.
“Indonesia aims to eliminate emissions with a zero-emission target by 2060. To fund this endeavor, Indonesia has issued a total of USD 8.1 billion of green bonds/green Sukuk until June 2022,” she informed.
In the first discussion session, the Governor of Bank Indonesia, Perry Warjiyo explained that Bank Indonesia’s monetary support for Indonesia’s green energy development through green financing instruments, policy, and campaigns, to enhance investment in renewable energy and green infrastructure development.
Meanwhile, on the same occasion, the Head of Nusantara National Capital Authority, Bambang Susantono shared infrastructure and green energy investment opportunities for Korean investors to support the biggest green development project to date in Indonesia, which is the construction of Indonesia’s new capital Nusantara.
He also further explained the support his institution is providing to investors including the ESG support office to make them comfortable working to build Nusantara into a Smart Forest Future City.
Then, the Ambassador of the Republic of Indonesia to the Republic of Korea, Gandi Sulistiyanto, expressed his wish for Korea to strengthen its relationship as Indonesia’s partner in development, particularly in renewable energy and infrastructure sectors.
He highlighted the importance of the palm oil sector to support Indonesia’s low-carbon transition and energy mix development. He emphasized that the Indonesian Embassy in Seoul will keep working to support the achievement of the Indonesian Government’s target to improve green energy development through investment.
The second session focused featured Mr. Jiro Tominaga, the ADB Country Director for Indonesia, Mr. Harlen En, Executive Vice President of Corporate Strategic Planning of PT PLN, and Mr. Pradana Murti, Risk Management Director of PT PLN. The three speakers highlighted Indonesia’s efforts in executing the JET-P and ETM Country Platform to increase Indonesia’s green investment portfolio.
The session underlined the important role Korean renewable and construction companies could take part in achieving Indonesia’s target to accelerate renewable energy development by reaching 34% of all Indonesian power generation in Indonesia by 2030.
This Business Forum is the third in a series of business forums organized by the Embassy of Indonesia in Seoul to celebrate the 50th Anniversary of Indonesia-South Korea Relations. This is also part of the South Korean RE Invest Indonesia, organized jointly with CSIS and Tenggara Strategics since 2020. RE-Invest Indonesia serves as a forum for South Korean companies/investors/financiers, Indonesia's RE project developers, and the government agencies of respective countries to discuss investment plans in renewable energy.
Among the distinguished guests were three Indonesian Ministerial-Level officials: The Minister of Finance, H.E. Mrs. Sri Mulyani Indrawati, the Governor of Bank Indonesia, H.E. Mr. Perry Warjiyo, and Chairman of the Nusantara National Capital Authority, H.E. Mr. Bambang Susantono. The event was attended by around 100 offline participants and 60 online participants, including CEOs and executives from Indonesian and Korean companies.
