Joint Press Release
23 September 2021
The Indonesian government has issued the Omnibus Law to provide legal certainty for foreign investors in a bid to strengthen economic growth. The government has fully supported the investment of the world’s largest renewable electricity transmission system, the Australia-Asia PowerLink (AAPowerLink), Coordinating Minister for Maritime and Investment Affairs Luhut B. Pandjaitan and Australian Ambassador to Indonesia HE Penny Williams attended the announcement of the project’s US$2.5 billion worth of investment in Jakarta on Thursday (9/23/2021).
“Sun Cable’s decision to invest more than US$2 billion in Indonesia shows that Indonesia is a trusted partner and a strategic investment destination for the international community,” Minister Luhut said.
The investment from the renewable energy company is expected to bring huge benefits for the Indonesian people. “Sun Cable’s commitment to transfer knowledge in a bid to support renewable energy development with Bogor Agricultural University (IPB) and Sepuluh Nopember Institute of Technology (ITS), as well as scholarship programme will help boosting renewable energy innovation in the future.
The investment will help enhancing Indonesia’s performance as one of the leading countries in ASEAN that could reach the target to lower carbon emissions. “ASEAN has 23 percent renewable energy target mix. The Indonesian government has recommended the Australia-Asia PowerLink Route through Indonesian waters and the Ministry of Transportation has granted the subsea survey permit. The government will work with Sun Cable on the next regulatory process.
Meanwhile, Australia’s Ambassador to Indonesia Penny Williams thanked Coordinating Minister Luhut Pandjaitan for his support for Sun Cable’s visionary renewable energy project and for Australian investment in Indonesia generally.
‘Australia believes in a technology-driven approach to combating climate change and I am pleased the Indonesian Government has supported Sun Cable’s project to harness and share the power of solar energy. I look forward to Sun Cable investing in Indonesia, sharing knowledge, creating jobs and contributing to the strengthening of Indonesia-Australia economic ties.
Sun Cable CEO, Mr. David Griffin thanked the Indonesian Government and Minister Luhut for their strong leadership: “Sun Cable looks forward to being a long-term partner in Indonesia, making a significant economic contribution. We are grateful to Minister Luhut, his department Kemenko Marves, KKP, Hubla, Pushidrosal and other agencies in Indonesia for their support.”
“We applaud Indonesia’s leadership and support for this project, as it highlights the government’s commitment to attracting foreign investment and growing domestic opportunities while reducing regional carbon emissions.”
“Sun Cable also looks forward to continuing our positive engagement with the Government and with Indonesia’s local provinces, as we work together to maximise benefits across Indonesia.”
Moreover, David mentioned that Sun Cable will invest up to US$2.58 billion in Indonesia, including direct investment of USD530 million to over USD1 billion during installation plus up to a further USD1.58 billion in operating expenditure over the life of the project. David also mentioned there’s a US$600 million opportunity for Indonesian manufacturers to produce battery storage.
“Decarbonising our planet is a challenge all people and all nations must rise to. But it is action, not words that are required. I commend Minister Luhut’s leadership, strong action towards this goal and his commitment to attracting investment into Indonesia and harnessing private sector collaboration with Australian companies such as Sun Cable and Fortescue Future Industries.
“This announcement is a testament to our two countries’ close relationship and as a proud investor I congratulate Sun Cable’s achievements in working with Indonesia to secure this milestone. I look forward to thanking Minister Luhut in person soon.”