Indonesia and Denmark Sign Breakthrough Deal on Wind Energy

Last year, at the Paris Climate Conference (COP21), Indonesia announced its admirable, if ambitious objective to reduce CO2 emissions by 29% by 2030. Considering Indonesia is currently the fifth largest emitter of CO2 in the world, this was a highly lauded announcement, and one that has the potential to be fulfilled, seeing as Indonesia has a vast array of natural energy sources to tap into.

In previous articles I’ve focused on Indonesia’s attention to geothermal sites, however, being an archipelago nation, there is also potential for wind power investment. Indeed, just two weeks ago, on the 19th of September, the Indonesian and Danish governments signed a deal to partner in developing the first wind farm in South Sulawesi (read more about it here: http://jakartaglobe.beritasatu.com/news/indonesia-denmark-sign-breakthro...). This is an alliance which encompasses both the government and private business sectors, and has been viewed as the gateway to future foreign investment in Indonesia’s renewable energy sector. The Danish ambassador to Indonesia has been quoted saying: ‘The wind farm project in South Sulawesi has strategic importance for the future of renewable energy in Indonesia,’ as it is a ‘milestone for Indonesia’s green energy transition,’ and paves the way for more investments.

Despite Indonesia’s potential for investment in renewable energy, foreign companies have been reluctant to invest given complicated bureaucracy, corruption, lack of infrastructure and legal certainty, and Indonesia’s abundance of cheap coal (http://www.indonesia-investments.com/business/commodities/geothermal-ene...).
Foreign investment is going to be an important ally in developing Indonesia’s renewable energy sector and ultimately to fulfilling its promise at the COP21 summit, however, foreign investment does raise the question of cultural preservation, particularly with regards to forest maintenance.