Partnership between

Towards Indonesia's
Low Carbon Energy Transition

Launch of the Mentari Program: The UK-Indonesia Low Carbon Energy Partnership

  • On 30 July 2020, the UK Government and Indonesia’s Ministry of Energy and Mineral Resources (ESDM) launched the Mentari program – a UK-Indonesia Low Carbon Energy Partnership that aims to support Indonesia’s green economic recovery.

  • Indonesia has among the highest renewable energy potentials in the world, 442GW or 6.5 times of current generation capacity. At present, Indonesia is using 2.15 % of that capacity – so the opportunity is huge. Indonesia has recognised this and set a target of 23% of total energy use coming from renewable sources by 2025.

  • Mentari aims to share the UK’s experience – in improving the regulatory framework around renewable energy, which in turn creates a better business environment and drives private investment in both on-grid and off-grid renewable energy projects – especially in Eastern Indonesia.

  • A clean energy transition for Indonesia is a win for all. Besides reducing harmful emissions and protecting the environment, a greener approach would also increase energy security and help extend reliable electricity at low costs to all Indonesians.

Today the UK is embarking on a new phase of its commitment to supporting global energy transitions and green economic recovery with the launch of Mentari: A UK-Indonesia Low Carbon Energy Partnership.

Mentari, in partnership with the Government of Indonesia, will deliver policy support towards an improved regulatory framework, in turn creating a better business environment for renewable energy. Through technical assistance, brokerage services and matchmaking, Mentari will stimulate private investment in both on-grid and off-grid renewable energy projects, with a focus on eastern Indonesia. To demonstrate the potential for community-based electricity projects, the programme will deliver a micro-grid project that increases power capacity and is integrated with productive business activities that will increase the host community’s economic growth. Mentari will also build domestic and international partnerships to share best practice, knowledge and innovation in the provision on renewable energy.

Global leaders have called for a green recovery that Builds Back Better, including at the IEA Energy Transitions summit attended by Minister of Energy and Mineral Resources Mr Arifin Tasrif on 8 July. A clean energy transition in Indonesia is a win for all: investment in solar PV, wind and other clean low carbon technologies create green, future-proofed jobs and industries in support of clean economic recovery and sustainable growth. It reduces harmful emissions and improves air quality, and protects Indonesia’s unique natural environment. It increases energy security and helps to extend reliable electricity access to all, including in the most remote areas.

Coronavirus has provided a stark reminder of what happens when humanity’s relationship with nature breaks down. As we recover, the decisions we make today will either lay the foundation for sound, sustainable and inclusive growth or lock-in polluting emissions for decades and in doing so make our society and the planet more vulnerable.

Mentari supports Indonesia’s efforts to drive a green recovery whilst achieving its target of 23% renewable energy by 2025. The programme aims to deliver poverty reduction through

inclusive economic growth via renewable energy development. Mentari helps Indonesia to take advantage of the global trend towards renewables, and the technology improvements and ever-decreasing costs in the energy sector. Underpinning all of Mentari’s activities is the objective to deliver poverty reduction, and use the development of renewable energy to empower and increase opportunities for women and girls and disadvantaged groups.

The UK – with its experience in energy transitions including the dramatic decrease in the use of coal, and the world’s most successful offshore wind programme – has much to offer. Earlier this month, the UK announces Rp 73 trillion for domestic economic stimulus measures for a green economic recovery – another proof of our commitment to a greener economic recovery. We have proven that it is possible to champion a more environmental friendly approach to energy, as well as create jobs and kick start the economy.

The programme officially launches on the 30th July, with a virtual event opened by Ego Syahrial, Secretary General of the Ministry of Energy and Mineral Resources (ESDM). Acting as panellists are HM Ambassador to Indonesia and Timor-Leste Owen Jenkins, ESDM Director General of New and Renewable Energy FX Sutijastoto, and Executive Director of the Institute for Essential Services Reform, Fabby Tumiwa.

HM Ambassador Owen Jenkins said:

“Indonesia has the potential to become a renewable energy superpower. As we face the challenge of global clean economic recovery and enter a critical decade in the fight against climate change, I am pleased that the UK is partnering with Indonesia in support of its energy transition. Our partnership through the Mentari programme supports the development of clean energy in Indonesia, a transition that will deliver inclusive economic growth, poverty reduction, secure and affordable energy access and reduce emissions.”

In his opening remarks, Secretary General Ego Syahrial said:

Indonesia is committed to meet renewable energy and emission reduction target. We are currently preparing Regulations to improve renewable energy development as well as prioritizing to use potential of renewable energy to provide energy supply to our people in the remote and outer areas while also targeting to replace all diesel power plants within the next three years. The MENTARI programme initiative comes timely, as it will become part of Indonesia’s clean energy transition. We are optimist that this programme can deliver inclusive economic growth and poverty reduction through renewable energy sector development.

Notes to Editor:

  1. The MENTARI Programme launch will be held on Thursday 30 July at 13:30 – 15:00 via via platform Zoom ( Journalists are invited to join and will have the opportunity to ask questions.

  2. British Embassy Jakarta is partnering with Ministry of Energy and Mineral Resources in delivering the programme.

  3. For more information, please contact British Embassy’s Media and Communication Section Head John Nickell at +62 812 1091 372.

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