UK Launch Second Phase of UK PACT: Boosting Energy Efficiency and Green Finance

Jakarta – A small step toward a greener future has been taken once again. This time, Indonesia and the UK strengthened their partnership through the launch of the second phase of UK PACT (Partnering for Accelerated Climate Transitions), a strategic program targeting broad-impact energy efficiency efforts, from regulations to tangible actions in both public and private sectors.

This program builds on the success of its first phase, which began in 2022. That phase helped pave the way for new regulations, strengthened institutions, and introduced innovative green financing models.

Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources (ESDM), Eniya Listiani Dewi, described this collaboration as a real example of long-term strategic international cooperation.

"Since its inception, UK PACT has become a catalyst for change by promoting market-based policies and introducing innovative financing schemes such as energy savings insurance (ESI) and partial credit guarantees. This has opened new opportunities for both the public and private sectors to engage in energy savings," said Eniya in a press release from the Ministry of Energy and Mineral Resources.

UK PACT does not stop at policy-making. The program also works in the field—training energy managers and equipping them with technical capabilities like data collection and efficiency measurement. On the financial side, industries and banks are being introduced to blended financing approaches that are gaining traction.

Phase Two: Broader Reach, Deeper Impact

Entering its second phase, five new projects will be rolled out. Their focus is clear: climate mitigation, expanding energy efficiency policies, and developing energy roadmaps at the provincial and city levels.

Not just central government, but local governments are now being more actively involved. The aim is for inclusive policies to better reach the local level—from energy-efficient government buildings to SMEs that are more aware of their operational efficiency.

Amanda McLoughlin, the UK’s Director of International Development for Indonesia, emphasized the importance of this collaboration in supporting a fair and equitable energy transition.

"We believe this partnership can become the foundation for building fundable prototype energy efficiency projects. Our focus is not just on the transition, but also on green economic sustainability," said Amanda.

The program was launched with a signing of the Implementation Agreement between the Ministry of Energy and Mineral Resources and the UK’s Foreign, Commonwealth & Development Office (FCDO). This moment also brought together key actors across sectors—government, civil society, and private sector—to reaffirm one key point: energy transition is a shared responsibility.

Towards Cleaner Energy, Greener Financing

UK PACT Phase Two is not just about projects and policies. It’s about changing how we think about energy: from unlimited consumption to smart efficiency. From conventional financing to green models that support both the planet and the economy.

This Indonesia-UK collaboration is proof that when political will meets innovation, the path toward a low-carbon future becomes increasingly open.