Jakarta (ANTARA) – Publish What You Pay (PWYP) Indonesia’s National Coordinator, Aryanto Nugroho said that the just energy transition had become a significant issue in Indonesia. The just energy transition is related to problems of climate improvement 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 on 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 early coal-fired power plants (PLTU).

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.

“However, then the question is whether the energy transition is also fair for regions like Indonesia with 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 minerals 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, so the critical minerals supply chain is essential to discuss.

“However, there is an interesting note here that besides talking about strengthening the supply chain of critical minerals, we must also promote inclusive investment to encourage growth in 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 must be in line 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 them precisely because of the need for batteries, the need for electric cars, we carry out extraordinary extraction so that in the end it is at odds with the goals of the climate goals themselves. The investment is also not green, and the operation is far from the principles of sustainable development,” he said.

Source: Antara News