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Investor Daily - Indonesia tawarkan investasi infrastruktur di Forum IPEF
Jakarta, ID – Indonesia showcased numerous sustainable infrastructure investment opportunities to investors at the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum 2024.
“This investor forum is part of the series of IPEF meetings held from 5-6 June 2024 in Singapore. With an investment target of Rp1,650 trillion in 2024, the Indonesian government is continuously boosting infrastructure investment and leveraging various opportunities for cooperation in sustainable construction,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in his statement on Thursday (6/6/2024).
Opened with remarks from Singapore Prime Minister (PM) Lawrence Wong, the IPEF CEIF 2024 is a platform that brings together investors from all over the world for sustainable projects in the Indo-Pacific region, with a particular focus on projects that promote clean economy and climate technology. This forum is expected to produce numerous investment agreements, underscoring the tangible benefits of the IPEF cooperation.
In addition to extending a warm welcome to all forum participants, PM Lawrence Wong underscored the significance of the clean economy pillar in expediting the advancement and adoption of eco-friendly technologies. Investments in this sector will further bolster clean energy and sustainable infrastructure initiatives.
Meanwhile, at the forum, US Secretary of Commerce Gina Raimondo said that the US would allocate US$25 billion for the Indo-Pacific region through investors attending the forum seeking investment opportunities.
In addition, Secretary Gina Raimondo expressed her support for various projects in IPEF partner countries, including the construction of data centres in Indonesia. The investment required for Indonesia’s enhanced nationally determined contribution is estimated at US$281 billion. To achieve net zero emission by 2060, Indonesia will need approximately US$1.1 trillion.
Furthermore, Airlangga also said that Indonesia has prepared a strategy to support green investment through numerous financing alternatives, such as green bonds, green sukuk, green taxonomy, and carbon pricing. Indonesia is also collaborating with the Japanese government through the Just Energy Transition Partnership (JETP) scheme, which entails funding of US$20 billion.
Besides that, Indonesia is also establishing cooperation through the Asean Zero Emission Community (AZEC) scheme, backed by funding of US$500 million. Key projects under this initiative include the Muara Laboh geothermal project with a capacity of 80 megawatts (MW) and the waste-to-energy power plant in Legok Nangka with a capacity ranging from 35 MW-40 MW.
Airlangga also stated that Indonesia offered 21 green infrastructure projects as potential investment opportunities at the IPEF forum, with 19 of them being pipeline projects.
“Two projects are ready, namely Cilacap Green Refinery worth US$860 million and South Sumatra Plaju Green Refinery that is also worth US$860 million,” Coordinating Minister Airlangga explained.
MoU with South Korea
Meanwhile, at the IPEF forum, Coordinating Minister for Economic Affairs Airlangga Hartarto and South Korea Trade Minister Inkyo Cheong signed a memorandum of understanding (MoU) on the implementation of Article 6 of the Paris Agreement, specifically aimed at reducing carbon emissions.
“To realise the commitment of the enhanced nationally determined contribution aimed at reducing carbon emissions by up to 31.89% independently and 43.20% with international support, Indonesia is exploring bilateral as well as multilateral collaborations,” Airlangga stated.
Airlangga is welcoming the initiative of South Korea Ministry of Trade, Industry, and Energy.
Through the cooperation, companies from South Korea and Indonesia are encouraged to collaborate to develop projects that can reduce carbon emissions in Indonesia, supported by funding from the Ministry of Trade, Industry, and Energy.
Besides that, both countries will also receive carbon credits through internationally transferred mitigation outcomes (ITMOs) for projects subsidised by the Ministry of Trade, Industry, and Energy.
Airlangga explained that the Coordinating Ministry for Economic Affairs has extensive experience in coordinating similar cooperation through the Joint Crediting Mechanism (JCM) between Indonesia and Japan since 2013. Presently, there are 55 JCM projects across various regions in Indonesia that have made significant contributions to low-carbon development in the country.
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