Indonesia aims at deriving 23 percent of its total energy needs from renewable energy sources by 2025, from 7 percent currently. To achieve this ambitious goal, the government signed a Memorandum of Understanding with Sweden, which holds the highest share of renewable energies to the national energy mix and offers the lowest price for new and renewable energy in the European Union. In addition, Sweden has recorded significant economic growth in the past 30 years while using less electrical power than in the previous 30 years.
By cooperating with Sweden, which has sophisticated technology for new and renewable energy, domestic electricity tariffs will hopefully become more efficient, Energy and Mineral Resources Minister Ignasius Jonan said on Friday. He further explained that the cooperation with Sweden would focus on the development of wind and hydropower potential in Indonesia. "Hopefully, with this partnership, we will get more advanced technology, and the price of wind- and hydropower will be lower in Indonesia," the minister said. Sweden developed smart grids, batteries technology and improved energy efficiency to reduce energy costs. However, the two countries are still working on identifying specific projects that may be eligible for the Swedish investment, Jonan said.
Ibrahim Baylan, Sweden's minister for policy coordination and energy, said his country is keen to share its experience in reducing energy costs to the lowest in Europe through extensive use of renewable energy resources. Baylan said one critical lesson from Sweden's experience is that the government needs to implement and commit to a policy that allows long-term investment in the renewable energy sector.
The cooperation is of mutual advantage, as Indonesia can benefit from Swedish know-how and experience in the field of renewable energy, while Swedish companies can enter the Indonesian market for renewable energy related technology and machinery.