Energy Transition Funds Actually Burden Poor Countries' Debt
Holiday Ayo - President Joko Widodo (Jokowi) was present at Stanford University, San Francisco, United States, delivering a public lecture on Wednesday (15/11).
During the public lecture, Jokowi said that funding for the energy transition from developed countries actually trapped poor and developing countries in piles of debt.
Jokowi said the debt pile occurred because the funding pattern provided by developed countries was still similar to that provided by commercial banks which charge high interest rates.
In fact, he said, if it is true that developed countries have positive intentions in carrying out and supporting the energy transition, the funding provided should be constructive.
“We know everything up to now, until now what is called climate funding (energy transition) is still business as usual, still like commercial banks. In fact, it should be more constructive, not in the form of debt which will only increase the burden on poor and developing countries," he said in a Public Lecture at Stanford University as reported by cnnindonesia.com, Wednesday (15/11).
Apart from this criticism, Jokowi said that so far the energy transition process in the world is still just a matter of discourse.
The transition has not yet led to real action. Jokowi said this was different from what Indonesia did. He said there was no need to doubt Indonesia's energy transition commitment.
He called Indonesia 'Walk the talk, not talk the talk'. He pointed out that Indonesia had done a lot to move from dirty energy to clean energy.
With the target that Indonesia can achieve net zero emissions or free from carbon emissions by 2060. The Head of State said that Indonesia had succeeded in reducing carbon emissions by 91.5 million tons in 2022.
Then, reducing the rate of deforestation covering an area of 104 thousand hectares, rehabilitating 77 thousand hectares of forest area, and restoring 34 thousand hectares of mangrove forests, all of which was carried out within a year.
“We know that the world is currently sick. Climate change and the energy transition are very, very urgent issues. But the question is, do countries in the world have a commitment to be responsible and take a role?" Jokowi asked.
Jokowi emphasized the importance of funding and technology transfer in energy transition matters. Therefore, he emphasized that developing countries need very large investments.
He demanded technology transfer and collaboration from developed countries, including investors entering the country.