Jakarta. Indonesia has agreed to cooperate with Sweden in developing renewable energy in the archipelago, Energy Minister Ignatius Jonan said on Friday (17/02).

Jonan said the cooperation with Sweden would focus on the development of wind and hydropower potential in Indonesia.

"Hopefully, with this partnership, we will get more advanced technology, and the price of wind- and hydropower will be lower in Indonesia," the minister said.

Sweden developed smart grids, batteries technology and improved energy efficiency to reduce energy costs.

However, the two countries are still working on identifying specific projects that may be eligible for the Swedish investment, Jonan said.

The two countries established the Indonesian-Swedish Initiative for Sustainable Energy Solutions (Insist) in 2013 as a platform to enhance cooperation on technological innovation for renewable energy between central government, local governments, universities and research institutes.

Ibrahim Baylan, Sweden's minister for policy coordination and energy, said his country is keen to share its experience in reducing energy costs to the lowest in Europe through extensive use of renewable energy resources.

Baylan said one critical lesson from Sweden's experience is that the government needs to implement and commit to a policy that allows long-term investment in the renewable energy sector.

Baylan, who was on a visit to Indonesia this week, brought along representatives of 16 companies, including telecommunication equipment maker Ericsson, to look for investment opportunities in the renewable energy sector.

Southeast Asia's most populous country aims to derive 23 percent of its total energy needs from renewable energy sources by 2025, from 7 percent currently.