Indonesia is struggling to roll out its plan to shut coal plants over the next 30 years as there were not enough potential investors to support its energy transition.
In an interview last week, the country's minister of state-owned enterprises Erick Thohir said Indonesia will need $600 billion to replace 15 GW of coal-fired power capacity with renewables.
It doesn't want to rely on bond sales but direct investment from developed countries to support the shift, he said. The government has approached Saudi Arabia, the United Arab Emirates and some European nations.
However, "no one responded to our offer," he said.
Indonesia is a key coal producer and the largest thermal coal exporter worldwide.
Indonesia has a viable path to reaching its target of net zero emissions by 2060, bringing major benefits to its citizens in the process such as more secure and affordable energy supplies.
But key policy reforms and international support will be crucial to the success of the clean energy transition in the world's fourth most populous country as it enters a new phase of its economic development.
The Southeast Asian country aims to lift the renewable portion of its energy mix to 23% by 2025, but has only reached around 12% so far. Coal currently powers around 60% of the country's electricity needs.
Indonesia wants to strike a balance between boosting economic growth and developing green energy, Thohir said. It's seeking to reduce demand for fossil fuels by promoting the use of electric vehicles and cooking stoves, as well as developing alternative energy sources, he said.
(Writing by Alex Guo Editing by Harry Huo)
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