H.E. Hasan Kleib
Deputy Permanent Representative
of the Republic of Indonesia to the United Nations
on Panel I and II
“Status and Prospects:
Energy efficiency and new and renewable sources of energy”
“Meeting the challenges: Investment and Policies”
New York, 18 June 2009
I would like to thank the panelists for their presentations. Because of insufficient time, in the morning session, the intervention I am delivering responds to the morning and this afternoon session.
Both sessions highlighted the importance of this debate in light of global energy poverty and climate change.
There is almost universal recognition that the challenges of energy security, climate change and development are all interrelated within the context of sustainable development.
While acknowledging that fossil fuels for the foreseeable future will continue to have important role in the world’s energy mix, there is also a need to overcome dependency on a single energy source. New and renewable energy, as well as energy efficiency are essential complements, but their success is dependent on four factors:
First: Political commitment to deploy energy efficiency and new and renewable sources of energy based on needs, circumstances and capacity of each country.
Second: Transfer and deployment of technological innovation. We need to abandon business as usual and make a new breakthrough. The proposal to establish a multilateral fund and international centre on transfer of advanced energy technologies made by Belarus merits positive consideration.
Third: the commitment of the international community to develop a roadmap to promote energy efficiency and new and renewable sources of energy in a coherent manner through the UN. Just as with the MDGs, the international community should rally behind specific time bound energy targets and objectives.
Fourth: as highlighted by the Secretary-General this morning consumer behavior can drive the transition to new and renewable energy as well as energy efficiency. In this context, changing mindsets to instill values; and negative behavior should continue to be promoted nationally, regionally and globally.
Before commenting on the second panel, allow me to briefly share the status and prospects of energy diversification in Indonesia.
In response to this morning discussion on the role of government in facilitating energy efficiency and renewable energy, Indonesia has established a National Energy Council chaired by the President of the Republic of Indonesia, which provides policy direction towards energy security.
In implementing energy security measures, an Energy Self-Sufficient Village Program was established with the objective of establishing 3000 Energy Self-Sufficient Villages by 2014. The program deploys technology that utilizes locally available renewable energy.
On the issue of investment, we need to ensure that investment continues to flow towards new and renewable energy and energy efficiency. We must have decisive reform in our energy policies at the national and global level to create a more conducive investment environment to ensure energy security worldwide.
Developing countries in particular still lack the appropriate infrastructure for new and renewable energy. Public-private partnerships; Economic incentives and; Reforms in energy policy are some key measures that can facilitate and accelerate the development of such infrastructure.
Developing investment incentives, establishing a prudent fiscal policy are some measures that can boost investor confidence. Moreover, we should formulate ways to overcome tax problems in energy efficiency and new and renewable energy resources investment. In addition, Indonesia has also provided fiscal and non-fiscal incentives for renewable energy investment.
As highlighted by the panelists, subsidies is not a sustainable option to energy security. However, in many developing countries, subsidies are unavoidable because of specific country need and circumstances. In Indonesia’s case, energy policy reforms include gradual reduction of fossil fuel subsidies and promoting energy development consistent with Indonesia’s pro-poor, pro-growth and pro-employment policy.
At the international level, the promotion of new and renewable sources of energy and energy efficiency can also be accelerated by a conducive international trade regime including the area of IPR. It is important to make IPR rules support access to energy and deployment of technology to diversify our global energy mix and efficient use of energy.
It is important for all national efforts to be supported by the international community, if we want to materialize energy security for the benefit of our people. This needs firm political will and concrete actions and resources.
This can set off the transition to a long awaited low-carbon economy; and possibly facilitate the coming to terms of a climate agreement in Copenhagen.
I thank you.
Permanent Mission of the Republic of Indonesia to the United Nations, New York
325 East 38th Street, New York, NY, 10016, USA
Tel: 1.212.972.8333, Fax: 1.212.972.9780 - www.indonesiamission-ny.org