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Indonesia and Germany to intensify cooperation on clean energy and low carbon development

JAKARTA ( – The Federal Republic of Germany and the Republic of Indonesia have declared their commitment to promoting low carbon development.

Indonesian Minister of National Development Planning Bambang Brodjonegoro, and the Parliamentary State Secretary of the German Federal Ministry for Economic Cooperation and Development, Norbert Barthle, have recently agreed to intensify their cooperation and outlined new and concrete initiatives, funded with a budget of 450 million Euro, (approx Rp7.8 trillion).

Both countries already collaborate actively in the Partnership on Nationally Determined Contributions (NDC Partnership) and have put the promotion of clean energy at the center of their bilateral development cooperation.

“The Indonesian government has set itself ambitious low carbon goals. It has sent a strong signal to install a climate-friendly and sustainable development policy,” Norbert Barthle said.

By 2030, emissions are to be reduced by 29% on its own efforts and up to 41% with international support, against “the business as usual” scenario. The share of renewable energies in the electricity mix is to be increased to about 23% by 2025. At the same time, the demand for energy is expected to increase considerably due to continued economic growth.

In order to support the Indonesian endeavours to develop in an environmentally sustainable manner and to fulfil its international commitments, the German Parliamentary State Secretary offered funding to two new bilateral energy-related projects.

The first project aims to explore the immense potential of geothermal power throughout Indonesia. A second project will build transmission lines in Sulawesi.

The transmission lines will connect sources of renewable energies such as hydropower to the electric grid in Sulawesi. For supporting the projects, the German Government offers funding of up to 300 million Euro (approx. Rp5.2 trillion) for the geothermal endeavours and up to 150 million Euro (about Rp2.6 trillion) for the transmission lines.

“Germany is a long-standing and highly reliable partner of Indonesia” explained Bambang Brodjonegoro.

“Together, we address important challenges and already achieved a history of concrete results. I highly welcome this new funding proposal, which will intensify our cooperation significantly, especially with regard to clean energy and concrete low carbon development.” (*)

Edited by Roffie Kurniawan (email: 

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