Indonesian Ambassador Santo Darmosumarto (L) holds talks with Keo Rattanak, Minister of Mines and Energy at the Ministry’s office in Phnom Penh, on June 25. Ministry of Mines
In what could be one of the defining moments in Cambodia and Indonesia relations is the efforts of both governments to enhance regional energy synergy between the two countries.
In late June this year, Indonesian Ambassador Santo Darmosumarto met with Cambodia’s Minister of Mines and Energy Keo Rattanak to discuss ways and means to explore regional energy collaboration.
The discussions focussed on identifying and mapping potential mineral reserves in Cambodia, with an emphasis on bolstering the two countries’ strategic energy cooperation. Although coal remains the primary trade commodity between the two countries, both Ambassador Santo and Rattanak wanted to tap the vast potential in expanding
their cooperation into new and renewable energy resources, which aligns with the shared commitment of Indonesia and Cambodia to tackle climate change and reduce carbon emissions.
“Indonesia is dedicated to participating in the development of renewable energy in Cambodia, such as hydro and solar energy,” said Ambassador Santo, adding, “We are also keen to learn more from Cambodia, which has succeeded in transitioning much of its energy needs to more green alternatives.”
Additionally, the discussions addressed regional energy security with Rattanak seeking Indonesia’s support in realising the ASEAN Power Grid initiative.
Energy is central to both economies, and sustainable and equitable development of the sector is key to growth of the both parties. It is, therefore, Cambodia and Indonesia reaffirmed their commitment to further strengthen their cooperation in the energy and mineral sectors.
Indonesia has already opted to pursue the implementation of the downstreaming policy to boost the value of domestically made products in the hopes of expediting economic transformation in the future.
In the recently concluded 16th ASEAN & Asia Forum in Singapore, Indonesian Finance Deputy Minister Suahasil Nazara said, “We should not regard downstreaming strictly as a ban on the export of mineral resources. Note that this policy is a means to create added value in the mineral and metal mining sector.”
Indonesia is blessed with abundant natural resources, including mineral materials, whose presence is likely to mean much more in the future, he said.
Indicating bilateral and foreign investments, Nazara emphasised that Indonesia is always open to business players keen to invest in the downstream sector to strengthen its mineral industries.
He affirmed that the Indonesian government has striven to attract investments to fund the early retirement of coal-fired power plants, with the objective of promoting and intensifying the use of new and renewable energy.
“All these efforts are aimed at fulfilling two of Indonesia’s promises to the world, namely achieving targets put forward in the NDC (Nationally Determined Contribution) by 2030 and actualising net zero emissions by 2060 or sooner,” he underlined.
Indonesia is rich in commodity resources, particularly coal, natural gas, metals, and other mining and agricultural products. It is in line with this affirmation, that Cambodia and Indonesia talks to enhance regional energy collaboration assume significance.
Cambodia’s Power Development Master Plan 2022-2040 (2022) foresees growth of peak demand of around 7.5 percent/year to 8.9 GW in the medium scenario, including savings of 18 percent compared to a BaU (Business as Usual) projection. About 63 percent of the power capacity mix will be sourced from renewables by 2040. It confirms that there will not be any new coal-fired power plants except for those already authorised.
According to a study conducted by the National Council for Sustainable Development, “insufficient supply, high electricity prices and grid insecurity make Cambodia a highly suitable market for energy efficiency initiatives. The Cambodia Climate Change Strategic Plan (CCCSP) stresses the importance of energy efficiency in the residential and real estate sectors.
Earlier during a meeting with Environment Minister Eang Sophalleth early this year, Ambassador Santo conveyed his country’s willingness to develop cooperation in new and renewable energy. While renewable energy may account for more than half of Cambodia’s energy supply, he believed that there remains ample room for cooperation in this field, for example, through community-based microhydropower projects. This would open new opportunities for further enhancing the economic cooperation between the two countries after 65 years of diplomatic relations.
“There is potential scope for exchanges in community-based programmes to empower small and medium enterprises, for example, to convert waste into valuable items such as handicrafts and apparel,” Ambassador Santo said.
Speaking to Khmer Times, the Indonesian Ambassador said he believes that Cambodia and Indonesia still have a huge amount of potential and that they can join hands to push together for even better relations and cooperation, especially in economics and trade.
However, the Ambassador also spotted challenges that the two countries have to overcome for a smoother path towards a stronger diplomatic relationship. It begins with the most fundamental aspect, which is increasing the two people’s understanding and knowledge of one another.
“The biggest challenge, I think, is the lack of knowledge about one another,” he explained. “Cambodians know Indonesians as part of their history. Cambodians knew Indonesia in the 1990s, with the peace process, the Jakarta Informal Meeting, and the Indonesian peacekeepers in UNTAC (United Nations Transitional Authority in Cambodia). Of course, we are happy that it is being held dearly by the Cambodian people. But now, 30 years later, the relationship is at a different level, and we are demanded to pursue cooperation in other areas, for instance, economics, and education.”
Original Source: https://www.khmertimeskh.com/501542712/indonesia-cambodia-give-fresh-impetus-to-strategic-energy-cooperation/
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