Indonesia’s Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan and Andrew Forrest, Australian iron ore company Fortescue Metals Group (FMG) founder, inked a cooperation agreement on renewable energy development for the green industry here, Friday.
“The signing of this agreement demonstrates the close and strategic relationship between Indonesia and Australia. I believe our efforts today will strengthen the foundation of partnerships to build a brighter future together,” Pandjaitan noted in his remarks.
Both parties will establish a joint task force to facilitate, expedite, and materialize FMG investment in Indonesia in the construction of a 60-GW hydroelectric power plant and 25-GW geothermal power plant.
“This investment, excluding supporting infrastructure, will cost tens of billions of dollars. This is a huge investment that will have a positive impact on Indonesia,” he remarked without divulging details of the investment value.
Pandjaitan opined that taking into account the mineral and renewable energy potential of Indonesia and Australia, the duo can collaborate and become key players in the green and renewable energy industry in the global arena.
The agreement promotes sustainable development that is an amalgamation of economic development, social progress, and environmental protection, he stated.
“This agreement also strengthens President Joko Widodo’s policy of bringing together economic recovery measures as the main ingredient of our fight against the pandemic,” he affirmed.
Furthermore, a Letter of Intent (LoI) on the reduction of plastic waste in the Indonesian waters was signed on the occasion. The ministry’s Deputy for Coordination of Environment and Forestry Management, Nani Hendiarti, and Forrest inked the LoI.
Pandjaitan noted that Forrest, through the Minderoo Foundation, had contributed significantly to over 280 initiatives globally by offering approximately 2 billion Australian dollars, including in major ocean-centric initiatives.
Meanwhile, Forrest remarked that the development of renewable energy is a humanitarian effort to create a sustainable environment.
In a bid to tackle plastic waste, coordination for plastic waste processing with be conducted with several multinational companies, and the first prototype will be launched in December, he stated.
Forrest affirmed that power generation and renewable energy projects are expected to support the green industry that will hone the skills of Indonesia’s workforce. “Moreover, they will create new jobs for people of Indonesia,” he added.