Jakarta – Publish What You Pay (PWYP) National Coordinator Aryanto Nugroho said that the just energy transition had become a significant issue in Indonesia.

The just energy transition is related to climate improvement issues and efforts to accelerate the growth from fossil energy to clean and renewable energy.

“However, it is also a question that when we talk about energy transition towards clean energy, in the end, it still requires materials extracted from minerals, especially nickel, cobalt, bauxite, and others,” he said in a Media Discussion: Year-end Notes were monitored virtually in Jakarta Wednesday (21/12).

According to him, Indonesia has completed the G20 Presidency, which is considered quite successful, especially for several G20 agendas. For example, the decision to retire coal-fired power plants.

Then, also an agreement on financing with the Just Energy Transition Partnership (JETP) scheme worth Rp310 trillion was provided in the form of grants and soft loans over a 3-5 year period by the United States, Japan, some G7 countries, and European Union partner countries to Indonesia.

“It’s just that, then the question is whether the energy transition is also fair for regions like Indonesia that have extraordinary nickel resources?” said Aryanto.

Furthermore, he explained the results of the declaration at the G20 Chair Summary Energy Transitions Ministers Meeting on September 2, 2022, which committed to finding solutions related to energy security, including strengthening the supply chain of critical minerals.

According to him, G20 member countries have agreed that the critical mineral supply chain must be secured to encourage clean energy because the world needs these mineral resources.

It is known that Indonesia is trying to produce electric cars and provide subsidies to electric car buyers. In the end, supply chain critical minerals are essential to discuss.

“However, there is an interesting note that in addition to talking about strengthening the supply chain of critical minerals, we must also promote inclusive investment to encourage the growth of energy demand, but in line with sustainable development and climate goals,” he said.

This means that the extraction of nickel or mineral resources that are part of critical minerals should be refined with climate goals.

In addition, the meeting on September 2, 2022, also agreed on the Bali Energy Transitions Roadmap document, which aims to encourage smelter companies to adopt ESG (environmental, social, and governance) principles in extracting critical minerals.

“Do not let it happen that because of the need for batteries, the need for electric cars, we carry out extraordinary extraction so that in the end, it is against the environment,” he said.

Source: Koran Jakarta