Germany has agreed to support Indonesia in their journey to reducing Greenhouse Gas (GHG) emission, ensuring sustainable development and also reducing reliance on fossil fuel. In this, Germany would be facilitating a series of capacity development programme for the Southeast Asian countries comprising Indonesia, Philippines, Thailand and Vietnam. The capacity programme is designed specially to help these countries and would last until Feb 2024.
The capacity building programme would help Indonesia to improve their ability to harness data analytics thereby shaping data-drive and evidence-based policies that could steer the country towards clean and renewable energy. With this transformation, Indonesia hopes to be able to fulfil their commitment to the Paris Agreement i.e. to reduce GHG emission by 29% by 2030.
As of now, Indonesia has noted that the technological development of solar and wind energy is promising and is studying the feasibility of banking on these energy alternatives to replace their existing coal and gas power plants. While it seems feasible on paper, the transition could be a challenge because their private sector is very invested in the extraction of natural resources in meeting energy demands. As such, the government must be able to rally and encourage their private sector to come on-board the transformation journey.
I think we could expect to see the government to come to rely on a third party to negotiate a possible mid-point between the public and private sector. Otherwise, another development would be a PPP vehicle that is designed to spark clean and renewable energy investments thereby creating possible incremental steps for the private sector to leap into the next phase.
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