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Home GREEN ENERGY

Canada Prepares US$91.4 Million to Finance Energy Transition in Indonesia

by Editor Asiatoday
February 24, 2025
in GREEN ENERGY
Reading Time: 2 mins read
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Canada Prepares US$91.4 Million to Finance Energy Transition in Indonesia

Green energy project. Doc

ASIATODAY.ID, JAKARTA – The Indonesian government through the Ministry of National Development Planning is collaborating with Canada to accelerate the energy transition. In this collaboration, Canada will provide funding of up to US$91.4 million.

The funding amount consists of US$81.4 million in the form of soft loans and US$10 million in the form of grants to support energy transition efforts in Indonesia.

“We appreciate Canada’s strong support in efforts for a just and sustainable energy transition. “This collaboration is not only about funding, but also sharing knowledge and technology to achieve the target of net zero emissions by 2060,” said the Indonesian Minister of National Development Planning, Rachmat Pambudy, quoted from an official statement, on Monday, February 24 2025.

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Apart from the energy transition, Canada also offers experience and technology in carbon management and strengthening critical mineral supply chains, including lithium for the battery industry.

In the field of increasing Human Resources capacity, the Indonesian and Canadian Ministries of National Development Planning discussed continuing collaboration with the University of British Columbia in development planner training programs. This program includes joint research, student exchanges, and the development of evidence-based policies to support Indonesia’s development agenda.

As a follow-up, Indonesia and Canada will continue to strengthen communication and coordination in various development initiatives, including the 2025 Senior Official Meeting which is scheduled to take place in Canada. This meeting is expected to deepen the synergy between Indonesia’s national development policy and Canada’s Indo-Pacific strategy and the Indonesia-Canada Action Plan 2022-2025.

According to Minister Rachmat, this collaboration reflects the strong commitment of both countries in building a greener, more inclusive and sustainable future, in line with achieving the Sustainable Development Goals (SDGs).

“We look forward to strengthening bilateral development cooperation between Indonesia and Canada through concrete follow-up steps, ensuring alignment with national priorities, and encouraging impactful and sustainable development results,” said Rachmat. (AT Network)

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Tags: Asia Energy Transition InisiativeGreen Energy TransitionIndonesia - Canada Comprehensive Economic Partnership AgreementSustainable Development Goals
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