“Without transmission, there will be no transition” – RI calls on donors to finance the network – Regulations

The government has said Indonesia is unlikely to make significant progress in its energy transition unless it provides sufficient funding to build transmission networks, calling on donors to focus on less profitable projects such as grids while leaving out more lucrative investments in the country’s renewable energy sources.

Rachmat Kaimuddin, undersecretary for transport and infrastructure at the Coordination Office of the Minister of Maritime Affairs and Investment, said in an interview on July 15 that Indonesia is appealing to international donors to allocate funds for power grids, as most of the current pledges are only for renewable power plants.

“Sometimes our ‘friends’ are impatient. They think, ‘Oh, Indonesia doesn’t want to (build) renewable energy sources.’ But the problem is, where are these networks?” Rachmat said Jakarta Post.

“They say ‘I’ll give you money’, but often it’s only about renewable power plants. They don’t want to provide (financing) for the grid,” he added.

According to the draft investment plan for the U.S.-backed Indonesia Just Energy Transition Partnership (JETP), only $0.4 billion of the $11.5 billion in public funding has been earmarked for transmission and distribution. That could rise to $8.1 billion if Indonesia could tap other allocations.

Meanwhile, renewable energy projects receive a base amount of $1.2 billion in pledged funds, which could rise to $9.3 billion through other allocations.

Rachmat added that many renewable energy sources are located in remote areas, far from the centers of energy demand in urban areas, and connecting them requires the creation of new networks across the archipelago.

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