- The Indonesian government has noted that it supports African countries’ downstream renewable energy industry.
- Kusumawardani explained that the policy also provides Indonesia with a foundation for developing derivative industries, such as batteries for electric vehicles and renewable energy.
The Indonesian government has noted that it supports African countries’ downstream renewable energy industry to provide greater economic added value.
The downstream sector in the renewable energy industry involves distributing and selling renewable energy products and services to end consumers. This includes activities such as energy distribution, retail services, energy storage solutions and customer support.
Adriani Kusumawardani, the Assistant Deputy for Maritime Security and Resilience at the Coordinating Ministry for Maritime Affairs and Investment, stated that Africa has much potential. She disclosed this during the Indonesia-Africa Parliamentary Forum (IAPF) on September 2, noting that the firm has an MoU of cooperation ready.
On that occasion, she told the parliamentary delegates from African countries that the downstream process increases state revenues based on Indonesia’s experience.
Kusumawardani revealed that state revenues from the domestic processing of natural nickel resources rose to around USD38 billion, a significant increase from the initial USD1.3 billion when Indonesia sold the raw materials to international markets.
She explained that the policy also provides Indonesia with a foundation for developing derivative industries, such as batteries for electric vehicles and renewable energy. “African countries can implement this policy to ensure they can gain more value from mineral natural resources,” she remarked.
In addition to encouraging downstream development in Africa, Indonesia supports increasing competition and efficiency, as well as innovation and technology transfer. The IAPF is held concurrently with the 2nd Indonesia-Africa Forum (IAF II), which is expected to reach a substantial US$3.5 billion value of cooperation.
Key achievements of the IAF II include the inking of memoranda of understanding (MoUs) and strategic cooperation agreements, such as the development of geothermal energy between PT PLN and TANESCO Tanzania.
Also signed were a Master Agreement for health technology transfer cooperation between Biofarma and Atlantic Lifescience Ghana and a Letter of Intent between PT Dirgantara Indonesia and AD Trade, facilitating the purchase and maintenance of aircraft by Congo and Senegal.
During the forum, Indonesia also promotes priority areas for cooperation that include economic transformation, energy, mining, food security, health, and development.