BANDUNG WETAN, AYOBANDUNG.COM -- To continue to support the implementation of a green economy in West Java, Bank Indonesia (BI) together with the West Java Provincial Government (Pemprov) again held the West Java Energy Forum (WJEF) 2024 on Thursday, 21 November 2024.

This strategic program, which was held for the second time, raised the theme "Multi-Stakeholders Involvement for Financing the West Java Long-term Energy Transition and Green Development".

In line with the theme, WJEF 2024 is a forum for synergy and collaboration between Bank Indonesia, regional governments and all relevant stakeholders in optimizing the potential of energy and electricity sector projects in West Java. This includes debottlenecking various problems both in terms of policy, regulation, administration, technical and funding aspects.

Thus, WJEF 2024 is expected to increase the attractiveness of West Java in the eyes of investors to continue investing in the long-term energy transition and sustainable infrastructure development in West Java.

The WJEF 2024 event began with a series of thematic focus group discussions (FGD) in the new and renewable energy sector which was held on Wednesday (20/11). Various interesting topics are studied, including the utilization and use of geothermal energy in West Java.

There are also topics regarding energy efficiency or conservation for new industrial areas, a roadmap for developing and improving human resource skills that support the electric vehicle industry in West Java, and revitalizing small-scale energy systems for a productive economy through corporate social responsibility schemes.

Acting Head of Bank Indonesia Representative Office for West Java, Muslimin Anwar, said that global economic growth is faced with the challenge of climate change. This condition, he continued, has the potential to give rise to physical and transition risks which ultimately have an impact on monetary stability and the financial system.

"The role of the central bank is needed to be able to mitigate risks, including by ensuring the resilience of the financial sector, supporting an orderly, fair and capable transition; and strengthening synergies across authorities," said Muslimin.

Responding to this, Muslimin said, Bank Indonesia implemented a green policy framework through three pillars, namely the pillar of strengthening green macroprudential policies, through banking as the largest contributor to carbon emissions through its debtors with the greening the financing and greening the debtors programs.

"In the second pillar, Bank Indonesia is implementing a green money market deepening policy, namely by expanding green instruments such as green commercial securities, green repos and other green derivatives," explained Muslimin.

Apart from that, Muslimin said, Bank Indonesia is also increasing foreign exchange reserves in the form of green bonds and using them as a monetary instrument.

Furthermore, Muslimin explained, in the third pillar, Bank Indonesia implements green inclusive economic and financial development policies by fostering and developing green MSMEs which are classified into 3 (three stages), namely Eco-Adapter (has adopted but not yet become a core part), EcoEntrepreneur (has implemented it as part of its business), and Eco-Innovator (has innovated to increase production which reduces environmental impact).

Apart from that, Muslimin added, BI West Java continues to support the development of the green economy in West Java. "This support is provided both in a policy setting through the preparation of the Battery-Based Electric Motor Vehicle Ecosystem Study (KBLBB) which produces 9 concrete recommendations for the development of electric vehicles in Indonesia, both from the upstream, downstream and regulatory side," he said.

At the policy implementation level, this is done, among other things, through the WJEF event to support green investment by increasing the supply of new and renewable energy (EBT) projects, and encouraging demand for widespread use of EBT. In connection with the development of green MSMEs, BI West Java together with the West Java Provincial Government are also making efforts to promote green MSME products to domestic and global markets through West Java Creative Works (KKJB).

As an effort to promote investment opportunities to domestic and international investors, BI West Java together with the West Java Provincial Government have held the West Java Investment Summit (WJIS) since 2019, which includes offering environmentally friendly investment projects and a green investment concept that supports sustainable economic growth, such as Legok Nangka project, Groundbreaking Vinfast, and TPPAS Cirebon Raya.

"Not only physical investment, BI West Java also plays a role in investing in human resources to support the green economy through the Dedication to the Country program for 9 vocational schools that have a curriculum related to EBT," said Muslimin.

Meanwhile, Acting The Governor of West Java, Bey Machmudin, welcomed the implementation of WJEF as an important step towards the transition to the use of environmentally friendly and renewable energy. He assessed that this event was in line with Indonesia's national commitment to reduce Green House Gas (GHG) emissions.

"West Java has great potential to utilize its natural resources such as waste and geothermal heat, making it a pioneer in the energy transition in Indonesia. To achieve this goal, significant investment is needed," said Bey.

Therefore, Bey emphasized that the West Java government is ready to provide fiscal and non-fiscal incentives to green energy investors who are interested in investing in this region.

"Apart from that, all people are encouraged to contribute to the energy transition, starting from small steps in daily life, such as saving electricity use," he said.

In the WJEF 2024 series, Bey also symbolically inaugurated Rooftop Solar Power Plants (PLTS) at 7 SMAN and SMKN in West Java, as well as launching school energy ambassadors by signing inscriptions which will be placed at SMAN 1 Cianjur, SMN 2 Bogor, SMKN 1 Purwakarta, SMKN 1 Cimahi, SMKN 1 Garut, SMKN 2 Tasikmalaya and SMKN 1 Cirebon.

"The synergy between Bank Indonesia and the West Java Provincial Government and other departments and stakeholders will continue to be implemented in order to make the energy transition program and the development of a green and sustainable economy a success," concluded Bey.

For your information, the 2024 WJEF activity was attended by Acting. Governor of West Java, Acting Head of Bank Indonesia West Java representative office, and Chairman of the West Java Provincial DPRD. Also present were representatives of ministries/institutions at the central level, regents/mayors throughout West Java, members of the regional energy forum for West Java province, academics and project owners in the renewable energy sector throughout West Java.

(SOURCE)