Indonesia and Denmark on Monday (19/09) signed a landmark deal paving the way for a partnership in developing the first wind farm in South Sulawesi with a total capacity of 60 megawatts. (Reuters Photo/Carlos Jasso)

Jakarta. Indonesia and Denmark on Monday (19/09) signed a landmark deal paving the way for a partnership in developing the first wind farm in South Sulawesi with a total capacity of 60 megawatts.

State-Owned Enterprises Minister Rini Soemarno and Danish Minister for Energy, Utilities and Climate Lars Christian Lilleholt witnessed the agreement in Copenhagen, which sees Indonesia's national electric company PLN team up with a Danish consortium led by electricity company Equis.

“Today’s signing is a milestone for Indonesia’s green energy transition. The wind farm project in South Sulawesi has strategic importance for the future of renewable energy in Indonesia,” Casper Klynge, Danish Ambassador to Indonesia, said in a statement.

“This agreement resulted from a close cooperation between Indonesian and Danish authorities and private companies, as well as our government-to-government cooperation within the energy sector.”

Vestas Wind Systems, the Denmark-based wind turbine producer which has become the largest in the world, also signed a conditional agreement to provide turbines for the project.

“We are delighted to sign this agreement and continue the work to finalize the project. Vestas sees a long-term potential for wind energy in Indonesia, and we are confident this project can help pave the way for additional wind power investments," Vestas chief executive Anders Runevad said.

Green energy transition in Indonesia

According to the Danish Embassy's statement, the wind farm project holds a strategic importance for the green transition in Indonesia and paves the way for more investments into renewable energy projects.

It also supports Indonesia’s ambition in adding 35,000 MW of electricity and achieve 23 percent of renewable energy from the total production. Currently, Indonesia only has a share of 5 to 6 percent of renewable energy.

Indonesia is the world’s fifth largest emitter of CO2. The country announced the ambitious objective to reduce emission by 29 percent in 2030 at the COP21 in Paris, France, last year.

Minister Rini is currently on a three-day visit to Denmark from Sept. 18-20, where she will meet Danish companies’ representatives and investors to discuss potential investments and trade.