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JBIC to Finance NRE Development Projects in Indonesia | merdeka.com

JBIC to Finance NRE Development Projects in Indonesia |  merdeka.com

Merdeka.com – Coordinating Minister for Economic Affairs Airlangga Hartarto met with the Governor of the Japan Bank for International Cooperation (JBIC) Nobumitsu Hayashi at the Imperial Hotel Tokyo, Japan, last Monday (25/7). The meeting discussed a number of projects financed by JBIC in Indonesia.

Airlangga said JBIC specializes in providing financing in the energy sector. Some of the main infrastructure projects are the Tanjung Jati-B Power Plant, Java 1, and the Sarulla and Muara Laboh geothermal plants, as well as the Tangguh LNG project.

“These projects provide an energy source that is much needed in Indonesia’s economic development,” Airlangga said in his official statement, quoted in JakartaTuesday (26/7).

Airlangga said Indonesia’s focus in the next few years is to restore the economy and return to achieving high and sustainable economic growth, one of which is supported by the availability of energy infrastructure. The government immediately takes concrete steps to implement the energy transition to New and Renewable Energy (EBT) to achieve Nationally Determined Contributions (NDC) of 29% reduction in carbon emissions by 2030.

The Japanese government has also collaborated with Indonesia in reducing carbon emissions. One of them is through the Joint Crediting Mechanism (JCM) scheme. “This scheme is also being considered as part of the JBIC funding cooperation with Indonesia in the energy transition program,” he said.

During the meeting, Airlangga also discussed the Masela project which will become more strategic. Especially after the wars in Ukraine and Russia and because of the soaring demand for gas from the G7 countries.

Gas becomes very important because it can be used as raw material for ammonia and fertilizer. The gas can also be used to build methanol, one of the blends for biofuels. “The investment value of this project reaches USD 19.85 billion,” he said.

However, this project has challenges ahead, including the acceleration of energy transition, decarbonization requirements, and changes in the upstream oil and gas industry. So it needs to be evaluated and re-identified regarding the scope of the project.

The Governor of JBIC, Hayashi said that Indonesia is a strategic country and an important partner. He also promised to provide support in clean energy projects made by Indonesia. “JBIC’s support in the energy sector by supporting 11.6 GW of electricity is very helpful for Indonesia’s economic development,” he said.

Also attending the meeting was the Minister of Industry, Agus Gumiwang Kartasasmita. Agus hopes that there will be large manufacturing industrial projects in Indonesia that can be supported by JBIC. Hayashi also welcomed and promised to continue to support the investment of Japanese companies in the manufacturing industry, especially the automotive sector. [azz]

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