"This energy transition will not interfere with economic recovery efforts," said Minister of Finance Sri Mulyani Indrawati at the launch of the Indonesia Energy Transition Mechanism Country Platform, also known as the ETM platform on Monday (14/11/2022). At the same time, Indonesia is also committed to reducing carbon dioxide (CO2) emissions in accordance with the Paris Agreement.

It is believed that this energy transition measure will reduce around 50 million tons of carbon emissions in 2030, or 160 million tons in 2040. PT. Sarana Multi Infrastruktur was appointed as the country platform ETM Manager in managing the funding and financing framework for the energy transition in Indonesia. This multilateral cooperation involves the Asian Development Bank (ADB), the Islamic Development Bank (IDB), the World Bank, HSBC Standard, and others.

The pandemic has taught the world a valuable lesson, to be more serious in responding to climate change. This ETM platform is to demonstrate Indonesia's readiness to catalyze large financial resources in a reliable and affordable energy sector. This effort will be carried out in line with maintaining the economic growth.

"I heard that France will also provide funding for the construction of ETM, I hope the figure is not far from the fund provided by America," said Sri Mulyani.

Pressures on the economy due to natural disasters caused by climate change are becoming more frequent and unpredictable. Through the ETM platform, Indonesia can accelerate its climate change mission in a timely manner and its transition to renewable energy.

The government has submitted a new nationally-determined contribution (NDC) proposal to the United Nations, that is, reducing carbon emissions by 32% or the equivalent of 912 million tons of CO2 by 2030. This target increases from the previous figure of 29%.

The main steps to accelerate this energy transition can be done by initiating early retirement of coal-fired power plant. This, of course, is not easy and requires a large investment.