Remarks by Treasury Secretary Janet L. Yellen during a bilateral meeting with Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan

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I am pleased to welcome Minister of Maritime Affairs and Investment Luhut to the Treasury Department today.

First of all, I would like to thank the Minister and Indonesia for their leadership of the G20 this year, and in particular the focus of their G20 Presidency on pressing global concerns such as pandemic preparedness through the new World Bank Financial Intermediary Fund, as well as on promoting food security around the world.

I was delighted to be able to attend the G20 finance ministers meeting in Bali and to meet you in July. I look forward to more conversations this year.

Under the leadership of Minister Luhut, Finance Minister Sri Mulyani and other senior Indonesian officials, the Indonesian government, with the support of the United States, Japan and other donor countries, is working to accelerate the transition from Indonesia towards a cleaner energy future through an emerging partnership for a just energy transition.

Minister Luhut’s team and the US team, along with our Japanese partners, recently concluded productive meetings in Jakarta. The teams discussed Indonesia’s ongoing efforts to develop and implement an ambitious power sector transition strategy. The United States and our donor country partners stand ready to support such a strategy with significant amounts of financial support over several years.

My team has also pointed out that there is a considerable amount of private capital that is ready to invest in Indonesia’s energy transition – and its renewable energy sector in particular – if given clear and strong political signals. In this regard, we were delighted to see that earlier this week President Jokowi issued the Presidential Decree on Renewable Energy. Although we are still going through the details of the decree, it is clear that it represents significant progress.

I am also encouraged by Minister Luhut’s commitment to ensuring that the transition drives employment and innovation, while being fair and equitable for workers affected by the energy transition and vulnerable communities.

I would note that as Indonesia demonstrates its continued commitment to just transition, so does the United States. With the recent enactment of the Cut Inflation Act – which is our nation’s largest investment ever in the fight against climate change – the United States is now on track to meet our reduction goals. emissions while catalysing jobs in fast-growing industries. Importantly, the law contains specific provisions to incentivize investment in low-income and disadvantaged communities that are most vulnerable to transition.

Finally, I look forward to other topics of discussion today, such as how to deal with the high energy costs that are a concern in the United States and around the world. This includes maintaining stable energy prices and a steady flow of oil into international markets in the near term, even as we invest in preventing future price spikes and in our collective energy security through tools such as such as the partnerships for a just energy transition and the law on the reduction of inflation.

I now invite Minister Luhut to present his remarks.

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