Indonesia and Denmark Deepen Cooperation in Renewable Energy Transition

April 22, 2025 | 10:35 pm

TEMPO.CO, Jakarta - The governments of Indonesia and the Kingdom of Denmark are strengthening their cooperation in the new and renewable energy sector through the signing of a memorandum of understanding (MoU). The signing was conducted by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, and the Minister of Foreign Affairs of Denmark, Lars Løkke Rasmussen, at the ESDM Ministry office in Jakarta on Monday, April 21, 2025.

In his speech, Bahlil stated that this MoU is a continuation of the strategic cooperation between Indonesia and Denmark, which has been established for more than a decade, particularly in the development of environmentally friendly energy. Bahlil mentioned Denmark's proven commitment to energy transition, which he deemed worthy of appreciation.

"The signing of the MoU today is an extension of the cooperation that has been ongoing for ten years," said Bahlil.

Bahlil emphasized that this cooperation aligns with Indonesia's commitment to reducing carbon emissions, as stipulated in the Paris Agreement. He cited the early decommissioning of the 650-megawatt Cirebon I coal-fired power plant as a concrete step already undertaken.

"We have started to move, although the negotiation process for funding with the Asian Development Bank is still ongoing," he said.

He also emphasized the importance of affordable technology and swift funding to expedite the energy transition. Minister Bahlil noted that in the Electricity Supply Business Plan (RUPTL), the government aims for 60 percent of new power plant projects—excluding gas-fired power plants—to originate from renewable energy sources.

The General Chair of the Golkar Party also extended an invitation to Danish industry stakeholders to forge mutually beneficial collaborations. "We have a market, you have technology. Cooperation must be built on mutual respect and mutual benefit," he asserted.

On the same occasion, the Minister of Foreign Affairs of Denmark, Lars Løkke Rasmussen, mentioned that this energy cooperation is part of the long-term relationship between the two countries. He stated that over the past decade, Indonesia and Denmark have built a strong foundation in the renewable energy sector.

"This cooperation has allowed for the development of a comprehensive partnership since 2017. Today, we are celebrating ten years of energy partnership," said Rasmussen.

He further emphasized that renewable energy is not merely an environmentally responsible solution but also an economically competitive one. Minister Rasmussen noted that Denmark has demonstrated that economic growth can be achieved without an increase in CO2 emissions.

"We are here to support Indonesia and share experiences in green transition," he said.

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