Jakarta. Indonesia welcomes the recently launched Global Clean Power Alliance which is expected to be a new source of funding for the archipelagic country's energy transition.

The Global Clean Power Alliance was launched on the sidelines of the G20 Summit in Rio de Janeiro. Chief Economic Affairs Minister Airlangga Hartarto was present during its launch.

As the name suggests, this UK-led alliance aims to accelerate global clean energy transition. It commits to supporting countries to build investment platforms and providing the assistance needed to get the necessary clean finance flowing. The alliance also recognizes the important role of private sector in financing the energy transition through de-risking strategies and development of bankable projects, acording to a press release by the Coordinating Ministry for Economic Affairs.

Brazil, Australia, Barbados, Canada, Chile, Colombia, France, Germany, Morocco, Norway, Tanzania, the African Union are the first 12 countries or regional organizations that first sign up for the alliance.

"The launch of the Global Clean Power Alliance can be an alternative [funding] scheme to finance Indonesia's energy transition projects," the ministry wrote in its press release.

The ministry reported that efforts were underway for Indonesia to cut its carbon emissions.

The archipelagic country reported to boast immense renewable energy potential, including geothermal (24 gigawatts), hydropower (95 gigawatts), solar power (169 gigawatts), and wind (68 gigawatts). Indonesia aims to reduce its coal reliance to 33 percent by 2040, and thus it wants to boost the renewable use in its energy mix to 42 percent. The country also wants to add its renewable energy capacity by 75 gigawatts -- all supported by the construction of 70,000 kilometers-long new transmission lines.

"To this end, Indonesia needs an investment worth $235 billion," the ministry's press statement reads.

Indonesia is currently already part of other international energy transition mechanisms, including Energy Transition Mechanism, Just Energy Transition Partnership, Asia Zero Emission Community, and Joint Crediting Mechanism.