Indonesia-India Energy Collaboration Accelerates National Clean Energy Transition, Says Minister

January 27, 2025 | 09:44 am

TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that energy cooperation between Indonesia and India is a strategic step to support the national energy self-sufficiency target. This statement was made after accompanying Indonesian President Prabowo Subianto on a state visit to New Delhi, India, Friday, January 25, 2025.

President Prabowo in a meeting with Indian Prime Minister Narendra Modi, gave direction to make energy one of the main focuses of bilateral cooperation. "The Ministry of ESDM fully supports the President's direction to accelerate the achievement of energy self-sufficiency. One of them is through strategic collaboration with India in the clean and renewable energy sector," Bahlil said in a written statement Sunday, January 26, 2025.

This cooperation, said Bahlil, emphasizes a focus on investment in clean energy, such as geothermal and solar, as well as the development of sustainable biofuels, including bioethanol and bioavtur. "India has great potential to support the development of biofuels and renewable energy in Indonesia. With collaboration in this field, both countries can contribute to global targets related to sustainability and decarbonization," he said.

For the record, Indonesia and India have a track record of cooperation in the energy sector. One form of such cooperation is investment from an Indian company, Bharat PetroResources Limited (BPRL), which is one of the participating interest (PI) holders in the Nunukan Working Area (WK), Kalimantan.

Together with other partners, BPRL has allocated funds of US$ 80 million since 2016 for the development of the Badik and West Badik Fields. However, until now, commercial production has not been able to begin due to technical and economic constraints. The government has given an extension until 2026 to complete this project, on the condition that management remains carried out by the same contractor.

In the renewable energy sector, the Indian company Fourth Partner Energy is collaborating with Indika Energy to form PT Empat Mitra Indika Tenaga Surya (EMITS). EMITS plans to invest US$500 million by 2025 in solar power projects, energy storage, and electric vehicle charging infrastructure in Indonesia.

Several projects that have been realized include a rooftop solar power plant (PLTS) with a capacity of 7 MWp in Tuban, a hybrid PLTS for PLN's de-dieselization program in eastern Indonesia, and a PLTS on Mangole Island, Maluku, with an investment value of US$12 million.

The Ministry of Energy and Mineral Resources hopes that this cooperation will not only strengthen national energy security but also become a catalyst for the global clean energy transition. "We want to ensure that the relationship between Indonesia and India in the energy sector continues to grow and is mutually beneficial," he said.

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