Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, and South Korean Trade Minister Inkyo Cheong signed a memorandum of understanding (MoU) on the implementation of Article 6 of the Paris Agreement, aimed at reducing carbon emissions.
The agreement, reached on the sidelines of the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial-Level Meeting in Singapore, outlines ambitious targets for carbon emission reductions.
“To reduce carbon emissions by 31.89 percent with our own efforts and up to 43.20 percent with international support, Indonesia is seeking to explore cooperation, both bilateral and multilateral,” Hartarto stated in a ministry statement.
He welcomed South Korea's initiative, expressing readiness for collaboration to implement Article 6 of the Paris Agreement.
Under the collaboration, South Korean and Indonesian companies will collaborate on projects aimed at reducing carbon emissions in Indonesia, supported by funding subsidies from the South Korean Ministry of Trade, Industry, and Energy (MOTIE).
Furthermore, both nations will accrue carbon credits through Internationally Transferred Mitigation Outcomes (ITMO) from select projects subsidized by MOTIE.
“MOTIE has contacted the Coordinating Ministry for Economic Affairs since last year. We agreed about the cooperation and signed the MoU today,” Hartarto confirmed.
He noted similarities between this cooperation and the Joint Crediting Mechanism (JCM) between Indonesia and Japan since 2013, which has facilitated 55 projects across Indonesia, significantly contributing to low-carbon development.
Hartarto expressed optimism that the collaboration with South Korea would bolster Indonesia's efforts to achieve its enhanced nationally determined contribution (ENDC) targets by 2030 and reach net-zero emissions (NZE) by 2060 or earlier.
He emphasized the potential of this collaboration to drive sustainable development in Indonesia by attracting green investments.
