Australia helping to clear the air in Indonesia

JAkarta’s traffic makes the highest clock creep in Sydney or Melbourne as a hypersonic pleasure trip. The sun is usually stained by smoke. Not only by cars and bicycles, but also caused by coal fuel power plants, the pollution of the city is constantly in the world’s worst in real -time graphics.

Indonesian enterprises, in this case and for installations and taxi companies, millions of drivers, the largest city in Indonesia (36 million inhabitants) that contribute to the streets and blurred air.

So is Australia. Indonesian electric motorcycle rental company Electrum, supported by fossil fuels to switch to electrical vehicles and supported some of them seriously hit these drivers, gave an privileged loan of $ 5 million to Electrum.

The electricity loan, Australia’s foreign aid programs, is a new part of a new shaft in solar diplomacy that rises as it changes to increase green business growth in Indonesia, our most important regional ally..

The renewed aid approach is designed to address some of the most urgent problems of the low -income country and to address a disturbing question for Australia: why should countries like Indonesia reduce emissions and miss the economic benefits of pollutant industries that enrich rich nations?

Australia, which has been rich with coal and gas exports, is trying to improve climate action identity information by financing potential green enterprises that will help the Indonesian government to balance economic growth and reduction of pollution.

Hundreds of millions of dollars pumping kinetics, this Australian Indonesian climate, renewable energy and infrastructure partnership program, endonesia abbreviation. The electricity loan is part of the kinetic portfolio.

Electrum’s General Manager Jack Yang said that the growth of the company is fueled because the Indonesian government admitted that transport is a key tool for climate action. “There is a clear direction there and there are a wide variety of initiatives and urban mobility is one of them.”

Yang said that electric motorcycles can save approximately 20 percent compared to gasoline bicycles, including the costs of electricity, electricity and git battery system. Designed to make charging suitable for intense riders, loaded automats facing the city allows busy riders to remove used batteries from their bikes and exchange them for fully loaded backups.

Electrum rented about 5000 bicycles in Jakarta, and Yang said that the growth potential was large due to a total of 17 million motorcycles on the road in the city. Environmental benefits are also high; Transportation produces about one quarter of all Indonesia’s pollution from road vehicles.

Electrum is supported by Jakarta’s dominant driving and delivery company Gojek and supported by PLN (Perusahaan Listric Negara), Indonesia’s giant state energy company.

Yang said that investors in Indonesian enterprises are ready to pay premiums to put their money into cleaner technologies. “If you turn into clean energy technology, you actually have a much higher premium. This means that shareholders want energy companies to think of new sustainable cleaner energy source.”

Using this return on investment is a reason for the creation of kinetics. The other, as Prime Minister Anthony Arbanese said, said that Australia sees Indonesia as “critical to navigate at this time of global uncertainty”.

“No relationship for Australia has no relationship for Australia,” he said during his first foreign visit since his election win in Jakarta in May.

Kinetic does not support initiatives like a traditional aid program, but invests in businesses and entrepreneurs. Its aim is to deposit its first $ 200 million donation to enterprises that produce returns that can be pumped back to other green initiatives.

“We know that the grants from the government will never be enough to fully address the climate struggle of the government, so it is important to support financing mechanisms to support the climate crisis, Kol Charlton is also the General Manager of Australian Impact Investments.

Indonesia has committed a commitment in accordance with the Paris Climate Change Agreement in order to reduce emissions below 32 percent below 32 percent below 2030 and reach a net zero emissions by 2060.

It is a challenge for Indonesia as it imposes local content laws designed to combat poverty by increasing local production to move to cleaner energy, increase the work and increase the economy. This will almost enhance the trust of electricity provided by coal -fired power.

In May, kinetics announced an investment of $ 15 million in the Indonesian company Hijau and established roof solar panels for commercial customers such as shopping centers. Australia direct investments independent committee member Jeremy Cleaver said that Hijau was chosen because of his ability to provide a return, which would increase further financing agreements.

“This is an equinity investment for Hijau, so it does not have to be paid back. However, the investment will have to be sold at some point and hopefully the fund will be paid to other opportunities.” He said.

Hangga Fathana, an assistant assistant associate assistant in Universitas Islam Indonesia, said that Australia’s investment strategy can strengthen the relationship with the Indonesian President Prabowo Subio government by offering opportunities from other regional partners seeking strategic harmony with Indonesia.

“China offers capital, Korea and Japan comes to Indonesia with technology and loans, and Australia offers confidence, cooperation and values,” he said.

However, Australia faces difficulties under the goal of investing in a wide variety of local value industries such as Prabowo’s downfall or mineral processing, production and agriculture. “Any green initiative, like those made by the Australian government, compete with this strong traction towards short -term economic gains, no matter how noble it is.”

Fathana said that China’s influence on Indonesian policy construction was “quite controversial” and argued that Australia’s strategy remained. “Australia needs to show what we call consistency and patience,” he said. China can achieve short -term results, but the trust building may work in the long term.

“This is thin but stronger for younger generations who are more aware of and more concerned about climate problems.”

Kinetics also supports Indonesia renewable energy company Xuria. It largely creates a green power supply for foreign companies operating in Indonesia.

Australia has invested more than $ 4 million in the Asian Fund Capital, who started commercial buildings such as factories and shopping centers under a zero -cost leasing arrangement seven years ago under a zero -cost leasing arrangement.

XURYA General Manager Eka Himawan said that they are motivated by foreign companies with their commitment to climate action to reduce the trust of Indonesia by establishing solar panels rather than economic factors. “Usually there is another repulsive factor behind it, Him Himawan said.

Indonesia’s state -owned electricity supplier PLN also worked with Xuria to fill the smaller islands than diesel fuel. Borneo and Java islands are strengthened by coal, while smaller islands such as Sulawesi rely on diesel generators. “[Diesel power] Expensive and very dirty, Him Himawan said. There is an economic driving force for PLN to start looking at the sun for the more remote islands. “

AC Ventures Manager Helen Wong said that hardening caused by Trump administration’s withdrawal of US funds arising from international climate initiatives creates a major headache for carbohydrates in low -income economies such as Indonesia.

Most importantly, the United States contributed to the 4 billion US dollar ($ 6.14 billion), promised to the Indonesian Just Energy Transition Partnership, also known as Jet-P, a common fund of $ 20 billion to reduce pollution in the fossil fuel economy of Indonesia.

“If you look at Southeast Asia as a whole, I think I think the world’s fourth largest energy consumers, but now 80 percent of energy is obtained from fossil fuel,” he said. “However, the world needs to understand that Indonesia has the ability to change and transition, but it can only do it with the help of developed countries.

“Although Trump withdrew from Jetp, we hope that other countries can take steps.”

Wong said that the Indonesian government is also under public pressure for Decarbonise, which also creates opportunities for clean energy investments. “When Jakarta was ranked as one of the most dirty cities in the world last year, there were many social media about how Indonesian’s health and their impact on children and the elderly.

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“The government is on action and looking at what is behind this pollution.”

Australia Indonesian Ambassador Rod Brazier said Kinetics helps to create more powerful investment ties between a pipeline of commercially suitable projects and Australia and Indonesia. Brazier said, “The response of the Indonesian government was very positive,” Brazier said. “Prime Minister Albanian and President Prabowo strengthened the value of kinetics when they met in Jakarta in May.”

Mike Foley went with the permission of the Jakarta of the Kinetic attempt of the Australian government.

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