MENTARI (Menuju Transisi Energi Rendah Karbon Indonesia) is a partnership between the governments of Indonesia and the United Kingdom set up to promote the uptake of low-carbon energy, supporting Indonesia’s just energy transition.
The programme started in 2020 and is led by the British Embassy Jakarta and Indonesia’s Ministry of Energy and Mineral Resources. It is implemented by a consortium led by Palladium International and composed of Castlerock Consulting, Yayasan Humanis dan Inovasi Sosial (Hivos), and Economic Consulting Associates (ECA).
Indonesia’s latest National Energy Policy sets a target of 23 per cent of the total primary energy supply from new and renewable sources by 2030, and 31 per cent by 2050. However, by 2022, renewable energy penetration in Indonesia has reached just 12 per cent. Common obstacles to the energy transition that industry players have identified include the lack of a stable regulatory landscape, limited access to finance and the few bankable, high-quality renewable energy projects on offer.
Indonesia needs to rapidly deploy both off-grid and on-grid projects to achieve its energy transition ambitions. Against this background and to assist in this process, the UK government launched the bilateral technical assistance programme, MENTARI, standing for ‘Menuju Transisi Energi Rendah Karbon Indonesia‘ – ‘Progress towards a Low Carbon Energy Transition in Indonesia’.
The primary purpose of the MENTARI programme is to act as a catalyst for accelerating Indonesia’s energy transition towards a cleaner electricity sector. MENTARI does this by supporting the political, economic and policy environments necessary to reduce fossil fuel consumption and increase the number of renewable energy projects.
By working closely with the Indonesian government and other stakeholders to improve the enabling environment and drive investment, MENTARI demonstrates the potential for low-carbon energy to boost economic development, create jobs and promote social inclusion in Indonesia while helping to mitigate climate change and the environmental impacts.
Four strands of MENTARI
To improve subsidiary policies, regulations and guidelines that create a more conducive business environment in the low-carbon energy sector by providing policy recommendations and building the capacity of key stakeholders in the sector.
To bridge the gap between available funding and viable projects, support the development of innovative financing mechanisms and help drive investment in low-carbon energy projects.
To deliver a small-scale, off-grid energy project in eastern Indonesia to showcase a replicable, economically feasible business model that generates inclusive economic growth for rural communities.
Collaboration, Capacity Building, and Networking
To promote capacity building, engagement and partnerships in the energy sector within Indonesia and internationally by creating knowledge exchange partnerships, organising workshops and events, and coordinating donor activity.
The programme mainstreams gender and inclusion across all activities to ensure all groups, including women and marginalised sectors, have equitable access to job opportunities and businesses, as well as clean, reliable and affordable energy.