Indonesia seeks China’s expertise in renewable ventures at the Belt and Road Forum, aiming to bolster its green transition.
In an endeavor to accelerate its transition to renewable energy, Indonesia is turning to China for support. As President Joko Widodo attends the upcoming Belt and Road Forum in Beijing, discussions around renewable energy and infrastructure projects are on the agenda, revealed a cabinet minister.
This potential collaboration with China is expected to be in line with the Just Energy Transition Partnership (JETP), a $20 billion pact that Indonesia shares with a U.S.-led consortium aimed at decarbonizing its energy sector.
Erick Thohir, the acting Chief Investment Minister, disclosed in a Reuters interview over the weekend that discussions surrounding JETP have been challenging, with many senior Indonesian officials expressing discontent over Western countries' hesitance to finance the phasing out of coal power plants and the high-interest rates associated with loans under JETP.
The partnership's formal announcement is anticipated next month before the United Nations COP28 climate summit, albeit three months later than initially planned. Despite the delay, Thohir emphasized that Indonesia is open to collaborations with any country willing to support its climate objectives, provided such cooperation aligns with Indonesia's grand vision, not that of other nations. "We want this to fit our grand plan, the Indonesia blueprint, not the blueprint of other countries," Thohir asserted.
During the Belt and Road Forum, Widodo is set to unveil a recently launched high-speed railway project named "Whoosh," stretching over 142 kilometers (88.23 miles) and valued at $7.3 billion, funded by loans from China.
Additionally, discussions around extending the railway to Surabaya city and enhancing trade relations are slated with Chinese President Xi Jinping. This bilateral dialogue follows a previous discussion with Chinese Premier Li Qiang during his Jakarta visit last month.
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