Australia Announces USD1 Million Investment in Indonesia's Energy Transition

Australia's first blended finance investment in Indonesia will be an investment of USD1 million in the South-East Asia Clean Energy Fund.

IDXChannel - Australia's first blended finance investment in Indonesia will be an investment of USD1 million in the South-East Asia Clean Energy Fund.

The investment will target Indonesian small and medium enterprises in renewable energy generation, energy efficiency and electric mobility. It will  be matched by a contribution from Australian private investors.  

“Blended finance investments will further strengthen Australia’s economic partnership with Indonesia," Australian Ambassador to Indonesia Penny Williams said in a media release on 19 April.

Blended finance is one tool under Australia’s Southeast Asia Economic Strategy. The Strategy aims to lift Australian investment in the region, including Indonesia.

Australia is using blended finance to invest in Indonesia's net zero transition through the Australia-Indonesia Partnership for Climate, Renewable Energy and Infrastructure (KINETIK) program which will combine public and private capital to accelerate investment.

To celebrate this investment, the Australian Embassy in Jakarta hosted an event on 18 April, attended by Indonesian government officials, development partners, private sector, investors and not for profit organisations. 

"We are excited about the role blended finance can play in both increasing Australian investment in Indonesia and helping to meet net zero targets," the ambassador stated. (WHY)