Indonesia's president urges developed nations to invest in green economy

Indonesia's president urges developed nations to invest in green economy

By Fransiska Nangoy and Bernadette Christina

Indonesia President Joko Widodo on Thursday urged developed nations to invest in energy transition and climate solutions in the country, flaunting its huge potential for renewable energy project and carbon mitigation.

Jokowi, as the outgoing president is popularly known, said the Southeast Asian nation has over 3,600 gigawatts of renewable energy potential that could be developed as well as 3.3 million hectares (8.2 million acres) of mangroves that could absorb up to 12 times the amount of carbon dioxide absorbed by tropical rain forests.

"All these will not give significant impact, as long as developed nations do not dare to invest, as long as research and development are not widely shared, and as long as affordable funding schemes are not given to emerging countries," he told participants of the Indonesia International Sustainability Forum in Jakarta.

He said the climate issues cannot be solved while investors are focused on economic calculations.

Indonesia has secured a $20 billion funding pledge under the Just Energy Transition Partnership scheme led by the Group of Seven countries, but actualisation of the financing has been minimal so far.

Resource-rich Indonesia, which is aiming for net-zero carbon emissions by 2060, is open to partner with anyone to develop the green projects, including investments in "green industrial estates", Jokowi said.

Indonesia has identified around 400 projects that need financing in order to reach its climate goals, senior cabinet minister Luhut Pandjaitan said at the same event.