Indonesia, Germany strengthen energy and skills cooperation 

The Indonesian and German governments are stepping up cooperation in new and renewable energy (NRE), as well as education and vocational training. 

The development follows a meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and German Federal Minister for Economic Cooperation and Development Reem Alabali Radovan in Jakarta on Thursday. 

"Indonesia welcomes the German delegation to promote several pipeline projects in the renewable energy sector," Hartarto said. 

He added that vocational education was another important issue discussed by the two sides. 

Hartarto explained that the strengthened bilateral cooperation builds on the long-standing and strong economic partnership between Indonesia and Germany. 

He pointed to the presence of more than 250 German companies in Indonesia as a sign of Germany's confidence in the country, with their cumulative investment reaching US$1.2 billion between 2021 and 2026. 

Regarding the renewable energy sector, Hartarto said the cooperation was in line with Indonesia's commitment to mobilizing US$21.4 billion in international funding under the Just Energy Transition Partnership (JETP) to support the clean energy transition and decarbonization. 

"Indonesia has allocated over US$21 billion, but progress has been rather slow. So far, only around US$4 billion has been utilized. We must move faster," he emphasized. 

Meanwhile, Radovan described Indonesia as an important strategic partner with a long-standing relationship based on mutual trust, particularly in the development sector. 

"We aim to strengthen our cooperation in the economic and development sectors. We discussed how German companies can play a role in sustainable development in Indonesia, particularly in the field of renewable energy," she said. 

Furthermore, Radovan said Germany was also committed to expanding vocational training cooperation between the two countries. 

"There are opportunities for young Indonesian students to learn German and participate in training, both in Germany and in Indonesia, organized by German companies," she continued. 

She also confirmed the involvement of other relevant partners, including the German Embassy in Indonesia, the German Organization for International Cooperation (GIZ), the German Development and Investment Bank (KfW), and the German Chamber of Commerce, in strengthening economic and development cooperation with Indonesia. 

"Our meeting today was very productive, and I am optimistic that we can further strengthen this partnership in the future," Radovan said. 

Source: ANTARA News 

BI Keeps Rate at 5.75% in August 

Bank Indonesia (BI) kept its benchmark interest rate at 5.75% on Wednesday, prioritizing rupiah stability and inflation control amid heightened global volatility stemming from the war in the Middle East. 

The central bank also held its deposit facility rate at 4.75% and lending facility rate at 6.50% following its Aug. 18-19 Board of Governors Meeting. 

Acting Bl Governor Destry Damayanti said the decision was aimed at strengthening the rupiah against external pressures while keeping inflation in 2026 and 2027 within the government's target range of 2.5% ‡ 1%. 

"The decision is also aimed at supporting sustainable economic growth," Destry said at a press conference on Wednesday. 

Bl will also expand its incentive policies and other measures to attract foreign portfolio investment, strengthen rupiah stability, deepen the money and foreign exchange markets, and improve liquidity while addressing liquidity segmentation in financial markets and the banking sector. 

Meanwhile, macroprudential and payment system policies will remain focused on supporting economic growth. 

Bl will continue to strengthen its accommodative macroprudential policy to boost lending and financing to the real sector while maintaining financial system stability. 

The central bank will also expand digital payment adoption, strengthen the payment system industry and improve the reliability and resilience of payment infrastructure to support economic activity. 

Source: Jakarta Globe

Indonesia to kick off 30 GW tender in 100 GW solar power push

The government is set to launch tenders for 30 gigawatts (GW) of solar power projects, kicking off President Prabowo Subianto’s ambitious plan to build 100 GW of additional solar capacity pledged in various events, including his Aug. 14 state budget speech.  

“We have discussed this first phase with Pak Darmawan [Prasodjo, president director of state electricity company PLN]. We will begin the tender process now,” Energy and Mineral Resources Minister Bahlil Lahadalia said during the Indonesia International Geothermal Convention & Exhibition in Jakarta on Wednesday, as reported by Bisnis.com.  

The minister said the direction of electricity system development has been set through PLN’s electricity business plan (RUPTL).  

He added that the solar capacity target underscores the government’s commitment to the energy transition. Prabowo previously announced a plan to build 100 GW of solar power over the coming years, saying it could save the state up to Rp 73.9 trillion (US$4.14 billion) annually in the basic cost of electricity production. 

Prabowo also framed the program as key to strengthening energy self-sufficiency down to the village level. “We have been blessed by God Almighty with sunlight almost all year round. It makes no sense for our islands to keep waiting for ships carrying diesel fuel just to generate electricity,” the President said.  

However, installed capacity of solar power still hovered around 1.6 GW as of April, far below the level needed to meet predetermined targets.  

The government admitted that difficult terrain, unresolved land acquisition issues and operational limitations of the Red and White Cooperatives, which are supposed to operate the power plants, pose challenges to achieving the ambitious target. 

In April, the Energy and Mineral Resources Ministry stated that it would utilize state budget funds to build solar plants in villages without electricity, handling everything from planning to feasibility studies. However, conditions on the ground were often “far from ideal”, noting that a recent survey of 218 locations uncovered extreme logistical and environmental challenges. 
 

Recently, the ministry identified approximately 9,000 hectares of land ready for the development of solar plants with a combined capacity of 30 GW.  Deputy Energy and Mineral Resources Minister Yuliot Tanjung said the land is drawn from government-controlled assets, including land banks managed by the Agrarian Affairs and Spatial Planning (ATR) Ministry.  

“In preparation for the 30 GW target, we have identified government-owned land that can be utilized, including land banks controlled by the ATR Ministry,” Yuliot told reporters on the sidelines of Indonesia Sustainable Energy Week in Jakarta on Wednesday.  

Beyond government land, the ministry is exploring the use of water reservoirs for solar power development, including the Saguling Reservoir in West Java. Yuliot said the ministry has coordinated with the Public Works Ministry regarding water resource utilization permits for the area.  

“This includes the use of reservoirs. Last week, I coordinated with the public works deputy minister; regarding Saguling, the permit for water resource utilization can now be issued,” he said.  

The Saguling solar plant has a potential capacity of approximately 100-150 megawatts, Yuliot noted, adding that land readiness is among the aspects being fast-tracked to ensure the national solar targets are met. 
 

Source: The Jakarta Post