WASHINGTON, D.C. (Oct. 26, 2015) — The White House Office of the Press Secretary on Monday released the remarks of President Barack Obama and Republic of Indonesia President Joko Widodo, following a bilateral meeting in the Oval Office. Along with the remarks were issued several Fact Sheets that are based on formalized agreements as a result of Widodo’s official state visit.
Oval Office – 3:55 P.M. EDT
PRESIDENT OBAMA: Good afternoon, everybody. Selamat siang. It is a great pleasure to welcome President Widodo to the Oval Office, along with his delegation. And it is a useful occasion for us to emphasize the strength of the bilateral relationship between two of the world’s largest democracies.
Obviously I have a very personal interest in Indonesia given the fact that I spent time there as a child and have relatives who are Indonesian. But what is also true is that our partnership is very much in the interests of the United States, given Indonesia’s large population, its leadership in the region, its democratic traditions, the fact that it is a large Muslim country with a tradition of tolerance and moderation, and its role in trade and commerce and economic development. The United States has a great interest in being a partner with Indonesia, and I think our meeting today helped to emphasize the nature of what we believe is a key strategic partnership.
During the course of this meeting I complimented the President on a number of the reforms that he’s initiated, and we discussed how we could continue to strengthen the trade, investment, and commercial relationships between our two countries, including the President’s interest in expanding the digital economy in Indonesia in a way that would alleviate poverty and empower millions of people in that country.
We had an opportunity to discuss our security cooperation, including in the maritime area, helping Indonesia modernize its naval capabilities. And we discussed the importance of working through channels like ASEAN and the East Asia Forum to encourage a continuing strengthening of rules and a international order governing the behavior of nations in the maritime area.
We talked about our cooperation in the counterterrorism area. Indonesia has been a very important partner. And we are continuing to work together not just on the security elements of counterterrorism, but also countering the message that comes from organizations like ISIL. And Indonesia I think is uniquely position to be able to help spread a message of peace and cooperation and modernity within the Muslim world.
And we discussed a range of global issues, because Indonesia, as a member of the G20, is not only a regional leader but also a global leader. So we discussed the joint work we’re doing on issues like global health security and making sure that we have public health systems in place to prevent future pandemic.
Indonesia has been a leader on the Open Government Forum and transparency and rooting out corruption. And one of the main topics we discussed was the issue of climate change and why it’s so important that large countries like ours work together to arrive at the strongest possible set of targets and international agreements when we arrive in Paris just a little over a month from now.
So whether it’s helping Indonesia deal with the current difficulties surrounding peat fires, or it is encouraging ongoing student exchanges between our two countries, this meeting I think signifies our taking this partnership to the next level.
I think that, Mr. President, you are moving Indonesia in the right direction. We want to be a partner with you. And please know that the friendship that the United States feels towards Indonesia is not just an issue of strategic interest but also represents the strong people-to-people ties between Americans and Indonesians. And we want to welcome you and wish you well, and look forward to our continued partnership.
PRESIDENT WIDODO: (As interpreted.) First of all, I wish to thank President Obama for his warm welcome and the hospitality extended to myself and my delegation. I wish to also welcome the strategic partnership as a symbol of the enhancement of the bilateral cooperation between Indonesia and the United States.
Indonesia is the biggest Muslim country in the world. Indonesia is also the third-largest democracy in the world.
Islam in Indonesia is moderate, modern, and tolerant. We believe that Islam in Indonesia plays a significant role in maintaining democracy and pluralism, as well as fighting radicalism and terrorism.
Indonesia is an open economy, and with the 250 million population we are the largest economy in Southeast Asia. And Indonesia intends to join the TPP.
Indonesia is also a country with enormous digital economy potential in the world. I have set a target to make digital economy as one of the top priorities in the future economic development of Indonesia. And in our discussion just now, I’ve also invited the United States to work together in this field.
We’ve had a thorough discussion with President Obama on the issue of climate change. We also agreed to work together in addressing this issue for the sake of our future generations. Especially in Indonesia, we have a big challenge right now. We have peat fires, and the efforts to extinguish it is quite challenging.
President Obama and I committed to strengthening and expanding the relationship between Indonesia and the United States.
PRESIDENT OBAMA: Terima kasih. Thank you, everybody.
Joint Statement by the United States of America and the Republic of Indonesia
At the invitation of President Barack Obama of the United States of America, His Excellency Joko Widodo, President of the Republic of Indonesia, visited the United States in October 2015. On this occasion, President Barack Obama and President Joko Widodo held a meeting at the White House on October 26, 2015, and adopted this Joint Statement.
The two Presidents recognized that the ties between their two countries are stronger than ever, dynamic, and firmly based on shared principles of democracy and good governance, respect for human rights, and the promotion of peace, stability, and economic well-being. The U.S.-Indonesia Comprehensive Partnership, a framework launched in 2010, has further broadened, deepened and elevated the bilateral relationship. The Comprehensive Partnership has demonstrated the global significance of enhanced cooperation between the world’s second and third largest democracies, the tremendous possibilities for economic and development cooperation, and the importance of fostering exchanges and mutual understanding between two of the world’s most diverse nations.
Strengthening a Long-Term Partnership
In order to meet evolving challenges and capitalize on emerging opportunities, the two Presidents recognized the need to enhance the U.S.-Indonesia Comprehensive Partnership and continue deepening the relationship based on mutual benefit and respect for each others’ sovereignty and territorial integrity. The United States and Indonesia, as two of the largest democratic countries in the world, share a responsibility and an abiding interest to address strategic challenges on the international stage, together as partners. In this spirit, the two Presidents committed to forge a Strategic Partnership between our countries, to expand cooperation on shared strategic interests. They further established an annual Ministerial Strategic Dialogue, led by the Secretary of State and the Foreign Minister and complemented by other minister-level exchanges, to discuss and collaborate on strategic efforts to advance international peace and prosperity as well as bilateral priorities. Recognizing the invaluable contributions of civil society and the private sector to the two democratic countries and their broader relationship, the two Presidents welcome civil society engagement and non-governmental tracks which will also be important to the vitality of their Strategic Partnership.
The two Presidents highlighted the importance of the maritime area to their respective countries, surrounding region, and the world. The two Presidents pledged to deepen their cooperation on maritime affairs, as described in the new “Memorandum of Understanding on Maritime Cooperation,” which extends to a full range of fields, including: maritime security, maritime economy, marine resources and fisheries conservation and management, maritime safety and navigation, marine science and technology and other areas of cooperation identified by both countries.
Both Presidents underlined the importance of improving maritime infrastructure to enhance connectivity and enable freer flow of commerce in the region and between the two countries. Therefore, they committed to continue working together to promote cooperation and investment in infrastructure.
The two Presidents also affirmed the urgent needs to combat, prevent, deter and eliminate illegal, unregulated, and unreported (IUU) fishing. They are committed to jointly identifying actions to strengthen bilateral cooperation and build capacity to combat IUU fishing.
The two Presidents affirmed their commitment to further strengthen their bilateral defense cooperation, and welcomed the growth in bilateral military engagements, which now stand at more than 200 activities annually. The Presidents welcomed the Joint Statement on Comprehensive Defense Cooperation of October 26, 2015, between the Indonesian Ministry of Defense and the U.S. Department of Defense. The two Presidents underscored their commitment to deepen collaboration on areas such as: maritime cooperation, peacekeeping, humanitarian assistance and disaster relief, defense joint research and development, countering transnational threats, and military professionalization. The two Presidents also affirmed their interest in exploring and consulting on new activities to advance cooperation in the areas of co-development and co-production of defense equipment, cooperative logistics, and maritime security. As peacekeeping cooperation has been and remains an area of bilateral cooperation, the two Presidents welcomed the outcome of the Leaders’ Summit on Peace Keeping on the margins of the 70thUnited Nations General Assembly. The United States welcomed Indonesia’s role in peacekeeping efforts and its intention to expand its troop contribution.
Economic Growth and Development
The two Presidents recognized the importance of a predictable, open, and transparent economic policy framework, one that encourages foreign investment and promotes fair competition and the protection of intellectual property rights, to facilitate greater two-way trade and investment and to promote private sector-led economic growth. They acknowledged that such a policy framework is important for the growth of the financial sector, as foreign investors and service providers can provide capital and expertise to help deepen Indonesia’s financial markets, as well as channel private sector resources to help develop Indonesia’s infrastructure. Both leaders discussed Indonesia’s recent reforms and affirmed that steps to enhance the ease of doing business in Indonesia would create the conditions for a further expansion in two-way trade and investment. The two Presidents welcomed the recent commercial agreements between U.S.-based firms and Indonesian partners, amounting to over $20 billion, as reflective of the deepening bilateral economic relationship.
Regular consultations under the U.S.-Indonesia Trade and Investment Framework Agreement (TIFA), signed in 1996, serve as a key platform for both countries to address bilateral trade and investment issues, develop concrete initiatives to further deepen economic ties, and to increase cooperation in regional and multilateral fora. Both leaders welcomed the outcomes of the recent TIFA meeting, especially the agreement on working together to leverage future rounds of Indonesia’s Economic Policy Package to advance deregulation. The United States and Indonesia remain committed to the ratification of the WTO Trade Facilitation Agreement and to the implementation of the 2011 APEC Leaders’ commitment to reduce applied tariffs on the agreed Environmental Goods List by the end of 2015.
Recognizing the opportunities and challenges presented by information and communications technology, both Presidents reaffirmed their commitment to ensuring that technology and innovation are critical components of overall bilateral engagement in the 21st century and in narrowing the digital divide. To this end, the Presidents committed to continue to develop cooperation in many areas of science, technology and innovation, including the development of the information and technology sector in Indonesia in alignment with Indonesia Digital Economy 2020 vision. The Presidents affirmed the need for states to protect the Internet as an essential platform for economic growth and development around the world. In support of that objective, both Presidents underscored the importance of further cooperation and discussions to ensure a safe and secure Internet, including efforts to promote trust, transparency, and stability among states regarding information and communication technologies.
The two Presidents also welcomed the recently launched bilateral Aviation Working Group aimed at assisting Indonesia improve the safety, security, and efficiency of its air transport network. Separately, the United States and Indonesia will continue consultations between the Federal Aviation Administration (FAA) and Indonesia’s Directorate General of Civil Aviation (DGCA) to support the DGCA’s full implementation of international safety standards set by the International Civil Aviation Organization (ICAO) with the aim of restoring Category I status at the earliest possible time.
Both countries note that their strong partnership to promote sustainable economic growth and reduce poverty through the $600 million Millennium Challenge Corporation compact, the largest compact in Asia, is advancing Indonesia’s efforts to promote renewable energy and greenhouse gas emissions reduction, deliver essential public services, and improve overall health and nutrition for women and children.
Recognizing their shared strategic interest in clean energy development and energy security, the United States and Indonesia affirmed their commitment to deepen energy-related cooperation as outlined under the new MoU Concerning Cooperation on Energy, which will support the establishment of Indonesia’s Clean Energy Center of Excellence in Bali and deepen cooperation in areas such as accelerating the deployment of remote and off-grid renewable energy systems, collaborating on carbon capture and storage, and strengthening national energy security by planning strategic petroleum reserves. The two Presidents welcomed the newly created U.S.-Indonesia Power Working Group, which is aimed at helping Indonesia achieve its ambitious power generation goals over the next five years in a clean and sustainable way.
Increasing Cooperation on Global and Regional Issues
Both Presidents welcomed the Indonesian Government’s maritime vision to become a global maritime fulcrum, as well as Indonesia’s leadership in regional and global fora, and the United States’ Rebalance policy to the Asia Pacific aimed at promoting peace, prosperity, stability and security in the Asia-Pacific Region.
Climate change remains a priority area of cooperation between the United States and Indonesia, and both countries committed to working closely together to implement strong domestic policies to limit greenhouse gas emissions and increase climate resilience. They also emphasized their commitment, at the Paris Climate Conference in December 2015, to conclude an ambitious and durable global climate agreement that reflects the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances, and that can help promote a global low-carbon transformation over the course of this century. Both Presidents affirmed their intention to phase out inefficient fossil fuel subsidies that encourage wasteful consumption while maintaining essential energy services for the poor. The Presidents reiterated their support for the statement on hydroflourocarbons (HFCs) from the 2013 G-20 Leaders Statement.
The two Presidents affirmed the importance of preservation of peat lands and other high-carbon landscapes. President Obama welcomed President Widodo’s recent policy actions to combat and prevent forest fires and associated health, environmental, and economic impacts, including President Widodo’s May 2015 decision to extend the moratorium on new development licenses in primary forests and peatlands, and President Widodo expressed appreciation for the U.S. offer to assist in this regard. Both Presidents are committed to sustainable forest management, including through private-sector initiatives.
The two sides reaffirmed their G-20 commitment to lift growth, boost economic resilience and strengthen global institutions in efforts to achieve strong, sustainable, and balanced growth, by undertaking policies to support demand and create jobs that underpin prosperity. They also committed to promoting sustainable development, and the two Presidents welcomed the adoption of the post 2030 Agenda for Sustainable Development and committed to supporting it.
The two Presidents pledged to continue and strengthen their efforts to address non-traditional security threats, including the scourge of terrorism and violent extremism, natural disasters, illegal trafficking of wildlife, illegal, unregulated, and unreported fishing and fisheries related crime, water security, and pandemics as well as cooperation and capacity building in cyber space.
President Obama acknowledged Indonesia’s success in counterterrorism law enforcement actions, which serves as a model of a civilian-led, rule-of-law counterterrorism approach. The two Presidents pledged to continue and strengthen their cooperation and strong efforts to counter terrorists and other extremist groups, including stemming the flow of foreign terrorist fighters, and counter-radicalization efforts to prevent virulent messages from taking hold in vulnerable populations. The United States and Indonesia welcomed the convention of the Leader’s Summit on Countering ISIL and Violent Extremism. The two Presidents endorsed the Council on Religion and Pluralism, an innovative bilateral mechanism, designed to promote pluralism, tolerance, and moderation. To prevent an act of nuclear terrorism, both Presidents welcomed the planned 2016 Nuclear Security Summit and will complete cooperative efforts to secure nuclear materials in advance of the Summit.
The two Presidents also acknowledged the need for expanding cooperation on health and to build capacity to prevent, detect and respond to global health challenges, including epidemic threats. Taking into account the expanding cooperation in this area, the two countries have committed to work on an umbrella agreement on health cooperation that will provide framework and future direction. The United States welcomed Indonesia’s continued leadership in the five-year initiative of the Global Health Security Agenda (GHSA) aiming for mutually agreed upon targets, including as 2016 GHSA Steering Group Chair.
The United States and Indonesia are committed to enhancing cooperation in regional fora, such as the Asia–Pacific Economic Cooperation (APEC) forum, the Association of Southeast Asian Nations (ASEAN) Regional Forum, and the East Asia Summit. Significantly, the two countries recognized the importance of a united and strong ASEAN, ASEAN’s central role in the regional political and security architecture, and the strength of the United States–ASEAN relationship. Both leaders also noted the importance of strengthening and developing a positive and constructive regional architecture by supporting the Indian Ocean Rim Association (IORA), and welcomed Indonesia’s intentions to further strengthen the regional architecture of the Indian Ocean during its 2015-2017 IORA chairmanship.
The two Presidents expressed their shared concern about recent developments in the South China Sea that have increased tensions, eroded trust, and threatened to undermine peace, security, and the economic well-being of the region. Both countries believe it is vital for all parties to refrain from actions that raise tensions in the South China Sea. Both Presidents affirmed the importance of safeguarding maritime security and upholding internationally recognized freedoms of navigation and overflight in the South China Sea. Both countries support the peaceful resolution of disputes in conformity with international law, including as reflected in the United Nations Convention on the Law of the Sea of 10 December 1982 (UNCLOS), and recognize the importance of full and effective implementation of the Declaration on Conduct of Parties in the South China, as well as efforts to quickly conclude the Code of Conduct of Parties in the South China Sea.
People to People Contacts
The United States and Indonesia, as two diverse democracies, are committed to fostering a robust civil society, vibrant press, and opportunities for women and minorities. Their joint leadership in the Open Government Partnership reflects their solid commitment to promoting good governance and transparency for the benefit of their citizens, and to sharing their experiences with emerging democracies through triangular cooperation.
The two Presidents are also committed to broadening and deepening the breadth of people to people ties between the two nations, including through promoting educational exchanges and tourism. President Obama welcomed Indonesia’s policy to extend visa-free arrangements to U.S. citizens on short-term visits. The United States and Indonesia will consider ways to extend the validity of non-immigrant visas issued to Indonesians traveling to the United States for tourism and business as well as the validity of student and exchange visitor visas issued to U.S. citizens traveling to Indonesia.
The United States and Indonesia are committed to advancing bilateral cooperation in scientific research and higher education partnership through expanding opportunities for scientist-to-scientist collaborations in priority areas outlined by the Science & Technology Agreement including marine protection, agricultural technology, health and renewable energy. As a centerpiece of supporting this cooperation, the establishment of the Indonesian Science Fund represents a milestone in Indonesia’s scientific development and the creation of new opportunities for connecting Indonesian research to the global scientific community.
Agreements and Arrangements Reached
The two Presidents welcomed the conclusion of the following agreements/arrangements:
· Memorandum of Understanding on Maritime Cooperation between the Government of The Republic of Indonesia and the Government of the United States of America
· Joint Statement on Comprehensive Defense Cooperation
· Memorandum of Understanding Between the Government of the Republic of Indonesia and the Government of the United States of America Concerning Cooperation on Energy
· Memorandum of Understanding Between the Federal Aviation Administration Department of Transportation of the United States of America and the Directorate General of Civil Aviation (DGCA) of the Ministry of Transportation of the Republic of Indonesia on the Promotion of Sustainable Aviation Alternative Fuels and Renewable Energy.
FACT SHEET: U.S.-Indonesia Maritime Cooperation
As part of the U.S.-Indonesia Strategic Partnership, the United States and Indonesia are working together on a wide range of maritime cooperation that will advance our shared maritime security interests, protect our global oceans, and promote sustainable development in the marine sector. On October 24, 2015, Indonesia and the United States signed a Memorandum of Understanding on Maritime Cooperation. This fact sheet provides further details on a number of key maritime initiatives between the United States and Indonesia.
· Protecting Coastal Communities and Fisheries: The United States will provide substantial assistance to support conservation of marine biodiversity, sustainable fisheries management, and improved governance of marine resources at local, district, provincial, and national levels in Indonesia. Efforts will focus on the three provinces in eastern Indonesia with the highest marine biodiversity.
· Combatting Illegal, Unreported, and Unregulated Fishing: The United States and Indonesia work closely to combat and deter illegal, unreported, and unregulated (IUU) fishing both in Indonesian and in the broader ASEAN region. The U.S. Agency for International Development, National Oceanic and Atmospheric Administration (NOAA), Department of Justice, and Department of Defense assist Indonesia through procurement of technologies, systems integration, and capacity building. This includes training related to implementation of the FAO Agreement on Port State Measures, fisheries enforcement, and information and intelligence analysis. Our collaboration also will support Indonesia’s capacity to comply with the new data requirements of the U.S. seafood traceability program, which is being developed to combat seafood fraud and IUU seafood in U.S. commerce.
· Expanding Marine Science & Technology Collaboration: Under the U.S.-Indonesia Agreement on Science and Technology Collaboration, NOAA collaborates with Indonesia to conduct joint observation and research on marine ecosystems, including oceanographic and climate variability research. This will improve our understanding of the complex interactions between the ocean and atmosphere and our ability to predict long-term climate change and ecosystem responses. The United States and Indonesia will be able to: assist with forecasting drought and abnormal rain fall for Indonesia, understand how oceanographic phenomena within the Indian Ocean affect the United States, and understand ecological impacts of ocean acidification on coral reefs.
· Improving Security at Sea and Ports: The U.S. Coast Guard and Department of State’s Export Control and Related Border Security Program conduct boarding officer training courses. The U.S. Coast Guard’s International Port Security Program also conducts capacity building for compliance with International Ship and Port Security (ISPS) standards. These efforts aim to detect and deter security threats in the maritime transport sector, especially for goods shipped between the United States and Indonesia.
· Promoting Environmentally-Sustainable Economic Growth: The United States and Indonesia will explore and support trade and investment activities to further develop trade ties between the United States and Indonesia in the maritime sector. We will also explore the creation of public-private partnerships, organization of business roundtables, and promotion of trade shows to support the sustainable development of Indonesia’s fisheries and ports. Indonesia and the United States, including through collaboration with the private sector, will support the use of sustainable catch methods by seafood businesses operating in Indonesia.
· Assisting Victims of Forced Labor within the Seafood Industry and Encouraging Justice: The United States contributes emergency victim assistance funds to support efforts by Indonesia and the International Organization for Migration (IOM) to rescue victims of forced labor within the fishing industry. The United States also encourages the Indonesian government to develop procedures to identify victims and refer them to care, as well as advocating for increased efforts to prosecute and convict recruitment agencies, brokers, and corrupt public officials involved in their exploitation.
· Assisting and Protecting Irregular Migrant Movements: In response to the May-June 2015 maritime migrant crisis in the Bay of Bengal and Andaman Sea, the United States contributed emergency funds to IOM and the UN High Commissioner for Refugees (UNHCR) to meet the needs of vulnerable migrants in Indonesia, Malaysia, Thailand, Burma, and Bangladesh by providing temporary shelter and non-food items, health and nutrition support, voluntary assisted returns, international protection, information sharing, and addressing root causes.
FACT SHEET: U.S.-Indonesia Energy Cooperation
Expanding U.S.-Indonesia Cooperation for Energy Development and Energy Security
Recognizing that sustainable development and energy security are fundamental to economic prosperity and national welfare, Indonesia and the United States have committed to expand their partnership on energy development. Building on the success achieved under the U.S.-Indonesia Comprehensive Partnership, the United States and Indonesia will partner to promote clean energy technologies and policies to help meet Indonesia’s growing energy demands, improve energy access, and reduce energy-sector greenhouse gas emissions to mitigate the global threat posed by climate change. Expanding U.S.-Indonesia cooperation covers a range of energy goals and involves a range of U.S. agencies and companies, with a focus on clean energy, the power sector, responsible oil and gas development and energy security.
U.S. support for energy development in Indonesia includes, among other investments:
- the Millennium Challenge Corporation (MCC) $332.5 million Green Prosperity Program;
- the U.S. Agency for International Development (USAID) has provided nearly $18 million for Clean Energy Development and to build Indonesian capacity to reduce carbon in land use and energy; and
- the U.S. Department of Energy’s $1.2 million Sustainable Electricity for Remote Indonesian Grids program.
In addition, the U.S. Embassy in Jakarta also has organized the U.S. Power Working Group for Indonesia, allowing the U.S. private sector and U.S. government to work together to help Indonesia achieve its power generation goals.
On October 23, 2015, U.S. Secretary of Energy Moniz and Indonesian Minister of Energy and Mineral Resources Sudirman Said signed a Memorandum of Understanding to expand existing energy cooperation focused on remote and off-grid renewable energy; assistance with the establishment of a Clean Energy Center of Excellence in Bali; strategic petroleum reserves; and collaboration on carbon capture, utilization and storage.
Millennium Challenge Corporation (MCC): Green Prosperity
The MCC compact with Indonesia’s Green Prosperity Program invests in renewable energy and land-based greenhouse gas emissions reductions through innovative public-private partnerships that leverage additional investment. The MCC compact with Indonesia is a cornerstone of U.S. support to the Jokowi administration’s goals of reducing greenhouse gases and generating 19% of the country’s energy from renewable sources by 2019. The compact committed over $145 million for renewable energy projects that will mobilize up to $400 million in private financing. A $15 million facility currently is supporting the professional preparation of 40 renewable energy projects—totaling approximately 100 megawatts (MW)—in partnership with the private sector and local governments.
U.S. Power Working Group for Indonesia
Indonesia has set an ambitious target of adding 35 gigawatts of power generation capacity by 2019, including 25% from renewable sources. This would provide the affordable and reliable power that Indonesia needs as a backbone to grow the economy.
The U.S. Power Working Group for Indonesia, launched in September 2015, represents a full “Team U.S.A.” approach toward helping Indonesia achieve its power generation targets, partnering closely with Indonesia’s Ministry of Energy and Mineral Resources and National Electric Company. The group includes about 60 company members and 11 U.S. government agencies and departments. The engagement of the Power Working Group is a key component in helping Indonesia boost its utilization of clean and renewable energy sources.
U.S. Agency for International Development (USAID): Accelerating Development of Renewable Energy and Energy Efficiency
Looking Ahead: USAID works with the key Indonesian stakeholders, including the Ministry of Energy and Mineral Resources (ESDM), the National Planning Agency (BAPPENAS) and the Financial Services Authority (OJK), to promote and accelerate development of renewable energy and energy efficiency as part of Indonesia’s plan to meet energy demand and achieve greenhouse gas (GHG) emission reduction targets. USAID recently launched the second phase of the Indonesia Clean Energy Development (ICED II) Project in May 2015. The project will run through 2020 with the goal to assist the government of Indonesia (GOI) in establishing an effective policy, regulatory and incentive environment for low-emission growth in the energy sector, while simultaneously attracting public- and private-sector investment in clean energy development and increasing human resource capacity in technology and innovation. Through technical assistance activities to government and private sector counterparts, the project is expected to achieve: (1) 4.5 million tons of greenhouse gas emission reduced or avoided; (2) $800 million of private and public investment mobilized; (3) an additional 5 million people with access to clean energy, (4) twenty institutions with improved capacity to address climate change issues, and (5) twenty laws, policies, strategies, plans, or regulations addressing climate change mitigation officially proposed, adopted, or implemented.
Results to Date: USAID’s future engagement in the clean energy sector builds upon the success of several programs conducted from 2010 to early 2015. In total, USAID’s $18 million in technical assistance mobilized approximately $269 million of private and public financing for commercial-scale clean energy projects. This investment represents approximately 181 MW of potential power capacity, sufficient to electrify more than 300,000 households and provide energy for 1.2 million people. In addition, as of early 2015, USAID assisted in the completion of four small-scale hydropower plants and 10 community-scale clean energy pilot projects with a total capacity of 21.84 MW. These projects generate electricity for 202,400 people and have reduced GHG emissions by 75,600 tons CO2e to date. USAID programs also contributed to the reduction of $3.28 million in subsidies to the power sector.
To achieve these results, USAID trained approximately 5,200 people and helped 24 local institutions improve their understanding and capacity on clean energy project development and climate change mitigation.
U.S. Department of Energy: Sustainable Energy for Remote Indonesian Grids
The U.S. Department of Energy (DOE) is funding the three-year Sustainable Energy for Remote Indonesian Grids (SERIG) initiative to support Indonesia’s efforts to develop clean energy and increase access to electricity in remote locations across the country. A collaboration between the National Renewable Energy Laboratory (NREL) and Winrock International, SERIG has two primary components:
Pilot Studies: SERIG conducted technical and economic analyses of renewable energy and hybrid systems to reduce reliance on diesel generation on selected Indonesian grids. The project identified three pilot locations in which hybrid systems make technical and economic sense. SERIG now aims to provide these site analyses for others to develop as proof-of-concept demonstration projects.
Nationwide Replication: The next goal of SERIG is to offer strategies for accelerating nationwide development of renewable energy in remote grids. With input from local partners, SERIG aims to draw upon experience and lessons learned to facilitate more widespread deployment of renewable energy.
U.S. Department of State: Climate Benefits of Geothermal Energy Development
To increase our cooperation on climate change and bolster Indonesian energy security, the United States and Indonesia will collaborate on financing structures and adequate project risk mitigation tools to accelerate the pace of geothermal investments in Indonesia. Indonesia has approximately 29 gigawatts of geothermal resources that, if fully realized, could help to avoid yearly release of .73 gigatons of CO2e.
The Indonesia Ministry of Finance established a geothermal fund for risk sharing with more than $300 million in funding to mitigate resource risks in early stage geothermal development. In addition, the World Bank has raised $150 million for the Global Geothermal Development Plan. The Department of State has proposed a geothermal risk reduction program that seeks to utilize these idle funds to support exploration drilling and insurance instruments for geothermal production drilling risk to accelerate the financing of geothermal projects in Indonesia.
FACT SHEET: U.S.-Indonesia Climate Cooperation
The United States takes a whole-of-government approach to helping Indonesian efforts to reduce its greenhouse gas emissions and counter the effects of climate change by improving local forest and land management, advancing public-private partnerships, promoting clean energy technologies, and providing technical assistance to improve scientific capacity related to responding to climate change.
Active U.S. partnerships in Indonesia are at an unprecedented level, including approximately $60 million under the Tropical Forest Conservation Act’s debt-for-nature swaps, and $50 million under the Millennium Challenge Corporation’s (MCC) compact. These programs leverage the expertise of the U.S. Forest Service, National Aeronautics and Space Administration (NASA), and National Oceanic and Atmospheric Administration (NOAA).
Conserving Ecosystems and Helping People Adapt to Climate Change
In addition to traditional programs to improve forest and peatland management of more than 8 million hectares in the Indonesian provinces of Aceh, Kalimantan, and Papua, USAID has innovative partnerships with the Indonesian public and private sector to conserve mangroves that sequester “blue carbon,” and partnerships to reduce degradation of forests and peatlands from agro-forestry cultivation.
MCC compact partners also are applying climate-smart agriculture techniques. For example, the compact has matched an industry investment of nearly $12 million in the cacao sector to assist Indonesian cacao farmers to increase productivity. Co-financing partners include U.S. industry leaders Mars and Mondelez. Another $25 million MCC activity engages communities and local governments in processes that reduce land-based greenhouse gas emissions.
But conservation of landscapes cannot exist without considering the impacts on Indonesia’s people. Through USAID, we are helping Indonesians to manage climate and disaster risk, minimize climate-related economic losses, strengthen community and environmental resilience, and transform the way climate and disaster risks are presently managed.
Training the Next Generation of Scientists
In addition to scholarships for Indonesian students to study in the United States, we are forging ties between leading U.S. and Indonesian universities to bring the best minds to bear on today’s issues and to prepare the next generation of scientists. These thought leaders will inform fact-based decision making on land use policy and stimulate local higher education. USAID partnerships also support research institutions to advance forest and peatland sciences, promote sister-agency collaboration, strengthen the management of forest resources, national parks, and conserve forest carbon and biodiversity.
Seven consortia of Indonesian universities and other organizations were selected for $15 million in competitive MCC grant awards. These funds will build local, provincial, and national capacity to strengthen the workforce and drive forward Indonesia’s nation-wide low carbon development strategy.