TEMPO.CO, Jakarta-The Ministry of Energy and Mineral Resources and the Asian Development Bank (ADB) agreed on Thursday, October 8, to collaborate on the establishment of the government’s Center of Excellence on Clean Energy.
Operate initially as an online virtual portal until physical premises are built on Bali, the center will bring together knowledge and research on clean energy, facilitate clean energy investments, and help deploy clean energy technology solutions coming from both the public and private sectors, the ADB said in a statement on Thursday.
ADB is providing technical assistance support to develop the initial concept of the center and is aiming to leverage inputs from international partners to help set it up.
Earlier in October, the ADB approved a $500 million loan, including $100 million from the ADB-administered ASEAN Infrastructure Fund, to help stimulate Indonesia’s energy sector.
The funds will support the government’s agenda to improve overall governance in the energy sector by lowering subsidies, adopting cost-recovery-based tariffs and boosting the performance of state-owned enterprises such as PLN, the state-owned electrical utility.
The Energy and Mineral Resource Ministry recorded that investment value in the renewable energy sector for 2015 had only reached US$1.17 billion, or equals to 26 percent from the targeted US$4.8 billion, the ministry said on September 28.
The ADB loan will be complemented by about $800 million in potential co-financing from key development partners.
NZM
