PALMOILMAGAZINE, JAKARTA – The Indonesian Ministry of Trade is advocating for collaborative efforts to support balanced trade by integrating climate adaptation and mitigation strategies. Nations are urged to prioritize environmentally friendly, green, and sustainable trade practices.
This message was conveyed by Vice Minister of Trade, Dyah Roro Esti Widya Putri, during the 2024 Pertamina Portfolio Forum held on Wednesday (12/4) at Grha Pertamina, Jakarta. The forum, themed “Orchestrating a Winning Portfolio”, emphasized the alignment between trade policies and climate action.
“The Ministry of Trade encourages collective efforts to promote balanced trade by addressing climate adaptation and mitigation. Climate policies are closely interconnected with trade. Each country must prioritize sustainable and eco-friendly trade practices,” stated Vice Minister Roro, as quoted by Palmoilmagazine.com.
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She further highlighted that energy transition is a critical step toward a green economy to address climate change and energy crises. In line with the Paris Agreement of 2016, Indonesia is committed to reducing greenhouse gas (GHG) emissions as part of the global response to climate threats.
Strategies Toward Net Zero Emissions by 2060
Vice Minister Roro outlined Indonesia’s key strategies for achieving Net Zero Emissions (NZE) by 2060, including energy electrification, efficiency improvements through the adoption of electric vehicles, expanded use of renewable energy, and the development of carbon capture and storage technologies.
“Energy security, encompassing both fossil fuels and clean energy, is a government priority,” she emphasized, highlighting the significance of new and renewable energy development, as well as international partnerships for global sustainability.
Indonesia-Canada Collaboration in Green Trade
The Vice Minister also highlighted the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA) as a breakthrough collaboration in critical minerals. Through a memorandum of understanding (MoU), the two countries aim to manage resources sustainably, adopt clean technologies, and optimize environmentally friendly trade and investments.
“Indonesia and Canada will work together to meet Environmental, Social, and Governance (ESG) standards, including protocols for mine closure and reducing GHG emissions,” she explained.
Economic and Trade Growth
Indonesia’s economic growth reached 4.95% in Q3 2024, supported by an investment realization of IDR 431.48 trillion, a 15.24% increase compared to the same period in 2023. Inflation remained under control at 1.55% YoY as of November 2024.
Additionally, Indonesia’s trade balance has consistently recorded a surplus for 54 consecutive months since May 2020. From January to October 2024, the trade surplus amounted to USD 24.43 billion, driven by a USD 41.82 billion non-oil and gas surplus and a USD 17.39 billion oil and gas deficit.
Energy Security Challenges and Policy Integration
Addressing the oil and gas deficit, Vice Minister Roro stressed the importance of commodity balance policies, which integrate data to ensure national needs and production of strategic commodities, including oil and gas. These policies are designed to enhance data transparency and accuracy, enabling more effective decision-making and efficient export-import management.
Focus on Export Diversification
Export diversification remains a key strategy for Indonesia. The government promotes value addition in strategic commodities like coal, nickel, and palm oil through downstreaming policies, while simultaneously expanding export market access through new trade agreements.
In 2024, the World Economic Forum ranked Indonesia 54th globally in the Energy Transition Index, placing it third in ASEAN after Vietnam and Malaysia.
“Diversifying products and markets is crucial for boosting exports,” Vice Minister Roro concluded. (P3)
