ASIATODAY.ID, WASHINGTON – The United States (US) is ready to invest US$239.5 million to finance the construction of one geothermal power plant and two hydroelectric power plants in Indonesia.
This investment was announced directly by US President Joe Biden after meeting with Indonesian President Prabowo Subianto at the White House, Washington DC, Tuesday, November 12 2024.
Biden emphasized that he would partner with Indonesia to develop the renewable energy sector. The construction of the geothermal power plant and hydroelectric power plant will be financed by the United States Trade and Development Agency (USTDA) and the US Development Finance Corporation.
“USAID and the US Development Finance Corporation helped one geothermal power plant and two hydroelectric power plants obtain private investment worth $239.5 million to support Indonesia’s commitment to achieve net zero emissions in the energy sector by 2060 or earlier,” Biden said via official statement.
In addition, the US will also mobilize the USTDA renewable energy mini-grid. According to Biden, later this partnership will involve the public-private sector with the National Laboratory of the United States Ministry of Energy in order to achieve the Net Zero World Initiative.
“We will support the mobilization of US$6 million to US$10 million across five locations and will mobilize up to US$2 billion in investment to convert 500 MW of diesel into a renewable energy hybrid mini-grid,” he said.
Biden said that this collaboration was carried out to develop clean energy alternatives for industrial growth. Moreover, the US and Indonesia are also partnering on an electric vehicle (EV) battery supply chain roadmap that identifies clean energy alternatives for the growth of the coal-powered industry.
Biden added that the US would partner with Indonesia to develop a methodology for collecting worker data. This is to overcome the clean energy transition for Indonesian workers. Not only that, Biden said the US Department of Energy (DOE) supports the Just Energy Transition Partnership Indonesia (JETP) Captive Coal study for decarbonization in the steel, cement, paper and aluminum industries. This collaboration could result in an investment of US$ 2 billion for clean energy applications.
“Furthermore, USAID has helped Indonesia accelerate its net zero emissions target in the electricity sector and establish policy reforms to achieve JETP goals,” said Biden. (AT Network)
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