The Indonesian and Australian governments continue to strengthen cooperation in energy transition through the Partnership for Climate, Renewable Energy, and Infrastructure (KINETIK) program by signing the Exchange of Letters for the Indonesia-Australia Economic Partnership (Prospera). The KINETIK program is a follow-up to the Australia-Indonesia Climate and Infrastructure Partnership (CIP) agreement announced by Indonesian President Joko Widodo and Australian Prime Minister Anthony Albanese at the Indonesia-Australia Annual Leaders Meeting 2022. The signing of the Exchange of Letters Prospera was conducted by Deputy for Coordination of International Economic Cooperation at the Coordinating Ministry for Economic Affairs Edi Prio Pambudi and Australian Ambassador to Indonesia Penny Williams on Thursday (25/07) in Jakarta. The Australian government has allocated grants amounting to USD 200 million for the KINETIK program, which will focus on mutually reinforcing pillars. KINETIK encourages increased investment in energy transition by supporting Indonesia's policy and regulatory reforms.
KINETIK opens financing access for small and medium enterprises focused on climate through Australian Development Investments and provides incentives for investments in large-scale green infrastructure projects. KINETIK also promotes an equitable energy transition where women, people with disabilities, and marginalized communities can participate and benefit from the shift towards zero carbon emissions. With the implementation of one of KINETIK's pillars, Prospera partners with the State Electricity Company, the Ministry of Environment and Forestry, and the Ministry of Energy and Mineral Resources, among other 32 beneficiary institutions. Prospera's support in implementing KINETIK will boost investment in energy transition by supporting Indonesia's policy and regulatory reforms. The signing of the Exchange of Letters was also followed by the Prospera Board Meeting, co-chaired by Deputy Edi and Australian Deputy Ambassador to Indonesia Gita Kamath, to evaluate Prospera's achievements in 2023-2024 and approve the Prospera Activity Work Plan and Budget for 2024-2025. Attendees included Assistant Deputy for Economic Cooperation America and Pacific Irwan Sinaga, Minister-Counsellor for Economic, Investment, and Infrastructure of the Australian Embassy Tim Stapleton, and Prospera Director.
