Our planet is experiencing a decline in habitability, marked by record-breaking occurrences and the alarming scale of disasters such as floods and heatwaves. 2023 was the hottest recorded year since 1850 at 1.18 oC above the 20th century average of 13.9 oC . The climate crisis is expected to cost the global economy as much as USD 1.7-3.1 trillion per year by 2050. Indonesia is one of the high-risk countries exposed to climate change, with sea level rise threatening 42 million Indonesians who live less than 10 meters above the sea level.

Indonesia has entered a new chapter with the inauguration of President Prabowo Subianto as the 8th President of the Republic of Indonesia on the 20th October 2024. The Prabowo-Gibran administration, supported by newly appointed Red & White Cabinet, are redoubling efforts to realise 8% economic growth and key flagship initiatives, including energy security, climate justice, and inclusivity.

Indonesia is well positioned to translate its ambitions to actions by focusing on (a) energy security powered by biofuels & renewables; (b) critical minerals downstreaming to support low-carbon transition globally; (c) carbon markets development through its renown global carbon sink. ● Indonesia has a vast supply of primary feedstock for biodiesel production at scale. This local resource availability can help Indonesia minimise dependence on fuel imports, and increase its energy independence. For example, Indonesia is currently a leading producer of palm oil in the world, with more than 55 million metric tons in 2023, accounting for more than 50% of global palm oil supply. The downstreaming agenda for palm oil and other agri commodities can be used for biofuels, Sustainable Aviation Fuels (SAF) and others.

● Additionally, Indonesia ranks #1 in nickel, #2 in tin, and #6 in copper reserves. By supplying critical minerals, Indonesia can enable the development of green industries, incl. Nickel battery materials for EV ecosystem; Copper for wind & solar farm facilities; and others.

● Moreover, as the country with one of the richest biodiversity in the world, including 94 million hectares of rainforests and 3.3 million hectares of mangroves, Indonesia’s forests and marine ecosystems can store carbon up to 50 billion tons – acting as one of the largest carbon sinks globally. Indonesia has the potential to become the global hub in solving the climate crisis and providing the platform to execute concrete solutions. Indonesia is amongst countries with the largest renewable potential which amounts to over 440 GW. In recent years, Indonesia has also pioneered one of the largest decarbonization deals and commitments. It has committed to Net Zero by 2060 or earlier and signed up to Just Energy Transition Partnership with the target to mobilize USD 20 billion in climate financing.

Some of international partners, however, have not fully mobilised their climate finance commitments and the vast majority of low carbon investment flows are largely focused on the Global North projects. According to BloombergNEF reports, low carbon investments globally has reached an all time high to US$ 595 billion. However, only 14% of these low carbon investment flows are directed to Emerging Markets & Developing Economic (EMDE ex-China).

Indonesia wants to take a pole position representing Global South countries with key climate solutions in biofuels and renewables; critical minerals as well as carbon markets, and advocate for faster deployment & partnerships to address the climate emergencies.