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Indonesia and Japan present joint task force to tackle emissions
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oordinating Minister for Economic Affairs Airlangga Hartarto and chairman of the board of directors of the Japan Bank of International Cooperation (JBIC) and special advisor to the Japanese cabinet Tadashi Maeda have jointly approved the formation of a task force for implementing the Energy and Infrastructure Transition, cooperation between Indonesia and Japan.
This was done through a meeting between the two parties in Jakarta on Thursday. However, the initial talks on the task force were held last July in the hope of accelerating the development of the energy transition and its supporting infrastructure, especially in the Kalimantan region.
The agreed task force has a structure consisting of a steering committee of policy makers at ministerial level, as well as an expert group managed by senior officials from the Office of the Coordinating Economic Minister and the Japanese Economy, Trade and Industry Ministry (METI), as well as the JBIC. Apart from that, the group will also involve officials from relevant ministries and corporations.
The meeting also explored the potential sectors to be developed in the country, including the development of a hydropower plant in Kayan, North Kalimantan, to replace a power plant in Java, the development of efficient technology for geothermal power plants, carbon capture, utilization and storage (CCUS), blue urea, as well as revitalizing peat areas with Japanese technology. Another meeting will be held to discuss the technical details.
"Japan, through the JBIC and METI, provides funding for collaborative projects in this task force through the Green Innovation Fund amounting to 2 trillion yen every year or around Rp 207 trillion per year. This funding can help accelerate the energy transition in Indonesia," said Airlangga.
Apart from the task force, Airlandda and Maeda also discussed the Joint Credit Mechanism (JCM) and other potential projects that will be implemented under the Asia Zero Emissions Community (AZEC). The JCM collaboration is designed to mitigate carbon emissions, as it has an important role in helping formulate national policies regarding carbon pricing. Furthermore, the implementation of the JCM also encourages the private sector to strengthen its confidence in participating in climate action.
Indonesia intends to launch a carbon exchange that allows various types of carbon to be traded. With support from Japan related to the JCM, Indonesia can implement as many as 54 JCM projects and carry out at least 150 feasibility studies related to carbon emissions-reduction programs.
As for the next high-level AZEC meeting, the Japanese government also conveyed plans for it to coincide with the 50th anniversary of the ASEAN-Japan relationship in Tokyo in December 2023. The coordinating minister positively welcomed the proposal and will convey it to the relevant ministries and institutions for support and participation.
