Media Release
19 April 2024
Australia's first blended finance investment in Indonesia will be an investment of US$1 million in the South-East Asia Clean Energy Fund.
The investment will target Indonesian small and medium enterprises in renewable energy generation, energy efficiency and electric mobility and it will be matched by a contribution from Australian private investors.
World-renowned expert Joan Larrea, CEO of Convergence Blended Finance, is in Jakarta this week to talk about blended finance, which combines public and private capital to invest in development and climate projects.
Blended finance is one tool under Australia’s Southeast Asia Economic Strategy, developed under the leadership of former Macquarie Bank Chairman Nicholas Moore. The Strategy aims to lift Australian investment in the region, including Indonesia.
Australia is using blended finance to invest in Indonesia's net zero transition through KINETIK, the Australia-Indonesia Partnership for Climate, Renewable Energy and Infrastructure, which will combine public and private capital to accelerate investment.
To celebrate this investment, the Australian Embassy hosted an event on Thursday 18 April, attended by Indonesian government officials, development partners, private sector, investors and not for profit organisations.
“We are heartened to see Australia responding so definitively to Indonesia’s call for more blended finance to meet its net zero targets. Australia’s investments will spur growth in climate SMEs and assist Indonesia in building more green infrastructure,” said Ms Larrea.
Australian Ambassador to Indonesia Penny Williams said, “Blended finance investments will further strengthen Australia’s economic partnership with Indonesia. We are excited about the role blended finance can play in both increasing Australian investment in Indonesia and helping to meet net zero targets.”
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