VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesia is developing a prototype carbon tax for coal-fired power plants, and is also "retiring" coal-fired power plants to be replaced by new and renewable energy (EBT) plants that have an affordable and sustainable financing model.

This was conveyed by the Coordinating Minister for Economic Affairs Airlangga Hartarto met with World Economic Forum (WEF) President Borge Brende on the first day of the 2022 World Economic Forum Annual Meeting (WEFAM) held in Davos - Switzerland, Sunday (22/5/2022).

Coordinating Minister Airlangga representing the Government of the Republic of Indonesia (RI) expressed his appreciation for holding the event in the midst of an uncertain global situation, especially in the post-pandemic recovery efforts and the current conflict situation between Russia and Ukraine.

Coordinating Minister Airlangga reiterated the support of global leaders, including Indonesian President Joko Widodo, for the 2022 Davos Agenda.

This support includes response to the pandemic, economic recovery, climate action, technological innovation, and global collaboration to support Indonesia's G20 Presidency.

In particular, according to Coordinating Minister Airlangga, Indonesia is a net exporter of coal. As for oil, Indonesia's position is a net importer, although Indonesia's current oil production is around 700 kilo barrels per day.

Currently, Indonesia is reviewing the 4 Gigawatt (GW) solar power plant project in Bintan whose output will be exported to Singapore as well as to meet domestic needs.

For hydroelectric power, Kalimantan, which has large and long rivers, is a potential area which is estimated to generate more than 10 GW of electricity.

As for the challenges of the energy transition, most Indonesians, with a per capita income of around US$ 4,000 a year, still cannot afford the more expensive energy.

Coordinating Minister Airlangga appreciated WEF for its support and suggestions in building a community of business leaders in Indonesia. As a platform to encourage climate action across the public and private sectors, then develop a pilot project for financing nature and biodiversity through a blended finance mechanism, and develop a transition bond protocol, as an opportunity to provide financing to companies that have a transition target to a green industry in the future.

The President of WEF said that the appointment of the President of the Republic of Indonesia as the Champion of the Global Crisis Response Group (GCRG) was in line with issues of food, energy, and finance.

In order to overcome the major interrelated challenges in global food, energy and financial security due to the Russia-Ukraine conflict, the GCRG plays an important role, particularly in helping developing countries overcome the financial crisis caused by the pandemic which was exacerbated by the food and energy crisis caused by the Russian conflict. and Ukraine.

Also attending the meeting accompanying the Coordinating Minister for Airlangga were the Minister of Industry Agus Gumiwang Kartasasmita, the Deputy for Coordination of International Economic Cooperation at the Coordinating Ministry for the Economy Edi Prio Pambudi, and the Director General of Resilience, Regional Affairs, and International Industrial Access of the Ministry of Industry Eko Cahyanto. (RRI)