In a meeting of G20 Finance Ministers and Central Bank Governors in Washington D.C. on April 17, 2024, Indonesian Finance Minister Sri Mulyani Indrawati emphasized the substantial investment needed for energy transition. She stressed the importance of prioritizing inclusivity and fairness in future climate planning, aligning with the G20 Transition Finance Framework. Sri Mulyani highlighted an annual investment gap of around USD 400 billion, according to data from the United Nations Conference on Trade and Development (UNCTAD), to implement essential elements of the transition to a low-carbon economy. To address this challenge, Sri Mulyani introduced the Energy Transition Mechanism (ETM) Country Platform as a blended finance framework to mobilize financial resources and international support. As an example, she mentioned a pilot project involving the early retirement of the Cirebon 1 coal-fired power plant, with a capacity of 660 megawatts. This initiative requires approximately USD 1.3 billion over the next 7 years but could result in a reduction of 28.5 million tons of CO2e.

Moreover, Sri Mulyani stressed the urgent need for carbon credits, particularly in attracting private sector investment. She highlighted the critical role of multilateral development banks such as the World Bank, ADB, and AIIB in addressing risk perceptions and management. Sri Mulyani, alongside Dutch Finance Minister Steven van Weyenberg, expressed appreciation for collaborative efforts in tackling climate issues, including participation in the Task Force for the Global Mobilization against Climate Change. The comprehensive approach outlined by Sri Mulyani underscores Indonesia's commitment to sustainable development and climate action, emphasizing the importance of international cooperation and innovative financial mechanisms to address the challenges of energy transition effectively.

Source: https://bisnis.tempo.co/read/1858889/sri-mulyani-bicara-transisi-energi-butuh-investasi-sangat-besar