JAKARTA • Indonesia has vowed to focus on energy security in the first round of the Group of 20 (G-20) Sherpa Track working groups, as the war between Russia and Ukraine and sanctions imposed on Russia exacerbate an increase in global energy prices.
Deputy Coordinating Economic Minister Edi Prio Pambudi, who is also G-20 co-sherpa, said the adaption of the energy security agenda would maintain the relevance of Indonesia's G-20 presidency by focusing on current challenges.
"Sherpas" is the term used for the senior civil servants who prepare summits.
Indonesia's G-20 presidency from the outset has been focused on three thematic pillars: strengthening global healthcare architecture, digital transformation and energy transition. "Now it means that, in the discussion of energy, it is not about energy transition only. Because in the end, it cannot be done quickly," Mr Pambudi told reporters on Monday.
The sherpa working groups usually consist of senior members of the heads of state and government in the group of 20 major economies. The G-20 leaders will meet in Bali in November.
Mr Pambudi said that because of the war in Ukraine, some G-20 member states were considering reallocating a significant portion of their energy transition budgets to energy subsidies.
"When we accompanied the Coordinating Minister (Airlangga Hartarto) from Davos to Germany, we could sense that the locals were anxious about the gas flow stopping. Imagine - industry collapses, unemployment creates social unrest. This is currently happening in Europe," Mr Pambudi said.
As a result, Indonesia as the G-20 president is facing a major challenge in balancing the need for energy transition as its main agenda with the need for energy security, he said.
"What is the relevance here, when we talk about climate change to reduce carbon emission, while they (other G-20 members) want to return (to conventional energy) to maintain their energy security? So, this is our homework," Mr Pambudi added.
He contended that one of the main challenges for Indonesia's G-20 presidency came from the economic sanctions the United States and its allies have imposed on Russia, as geopolitical considerations would hamper discussions on energy transition.
"The price goes up not because there's no stock - the stock is there, but it can't be sold. Why can't it be sold? Because there are sanctions. Why are there sanctions? To stop the war," he said.
"The war should be stopped first, but if the war is stopped, will the sanctions be lifted? Not necessarily."
On Monday, Indonesia's G-20 sherpa secretariat released a report on the progress of the first-round Sherpa Track working groups, which include the Energy Transition Working Group under the Energy and Mineral Resources Ministry.
The report states that all delega-tions agreed to the proposed three pillars of energy transition: securing of energy access, scaling-up of smart and clean energy technologies, and advancement of energy financing.
Institute for Essential Services Reform director Fabby Tumiwa said the shift to focus more on energy security in the G-20 discussions was tolerable as Indonesia should adapt to the economic concerns of the member states.
THE JAKARTA POST/ASIA NEWS NETWORK
