South Korea has set a target to become carbon neutral by 2050. In addition to encouraging the achievement of domestic targets, South Korea has also committed, through its Green New Deal Policy, to supporting the financing and development of green technologies internationally. The Institute for Essential Services Reform (IESR) views South Korea’s green commitment as an opportunity for Indonesia to accelerate the energy transition within the country, particularly in efforts to phase out the operation of coal-fired power plants.
During his remarks at the Indonesia - South Korea Golden Jubilee webinar: ‘Advancing Bilateral Cooperation through Green Energy Partnership Toward Sustainable Energy Transition,’ Fabby Tumiwa, Executive Director of IESR, emphasised the importance of the Just Energy Transition Partnership (JETP) agreement for Indonesia. It requires achieving a renewable energy mix target of 34 per cent by 2030, which can be realised by, among other measures, gradually phasing out the operation of coal-fired power plants until 2050.
“South Korean companies have been key players in Indonesia’s energy and industry sectors. Indonesia’s energy transition journey towards decarbonisation presents opportunities for South Korea, including the retirement of coal assets owned by Korean firms, investments in renewables and clean technology, energy storage, and electric vehicles,” Tuwima said.
Hyoeun Jenny Kim, Ambassador and Deputy Minister for Climate Change, Republic of Korea, who was present on the same occasion, also stated that the involvement of Indonesia and South Korea in various initiatives that encourage greener development will strengthen solidarity in climate change mitigation. She mentioned that ongoing negotiations between Indonesia and South Korea aim to foster close collaboration in climate change mitigation, including studies, policy changes, technology development, and private sector involvement.
“In both countries, coal is still a major source of energy. Therefore, we should accelerate efforts to phase out coal and proactively invest in renewable energy, energy efficiency, and energy storage. Furthermore, we need to build additional infrastructure and increase the share of clean energy in our energy mix. Despite the many challenges we may face, I am convinced that Indonesia and Korea can make a significant difference,” she highlighted.
Joojin Kim, Managing Director of Solutions for Our Climate (SFOC), said there is strong potential for Korea and Indonesia to collaborate in building a greener economy that is compatible with the Paris Agreement.
“South Korean banks are very much interested in investing in renewable energy in Indonesia, especially in solar and wind power. However, it is critical that there are policy frameworks that foster a more stable and transparent investment environment, ” Joojin Kim stated.
The webinar on ‘Advancing Bilateral Cooperation through Green Energy Partnership Toward Sustainable Energy Transition’ can be watched on the IESR Indonesia YouTube channel.
About the Institute for Essential Services Reform (IESR)
The Institute for Essential Service Reform (IESR) is a think tank organisation that actively advocates for meeting Indonesia’s energy needs while upholding principles of justice in the use of natural resources and ecological sustainability. IESR engages in a variety of activities, including conducting analyses and research, advocating for public policies, launching campaigns on specific topics, and collaborating with various organisations and institutions.