Australia and Indonesia agree to pay $400m for Indonesia’s offshore wind farms

A deal has been struck between Indonesia and Australia to buy the vast majority of the country’s offshore winds, as the two countries fight a costly legal battle over the rights of indigenous people in the region.

Key points:Indonesia’s new offshore wind farm will be built at a cost of $400 millionA deal to buy much of Indonesia’s wind power has been announced by Prime Minister Joko WidodoThe deal is expected to take two years to finalise and Indonesia will pay the first $400million, which will be earmarked for the projectA new offshore power project has been approved by Indonesia’s national parliament and is expected shortly to be officially signed off by the countrys prime minister.

Indonesian President Joko “Jokowi” Widodo is expected at the signing ceremony.

He has previously said he would consider buying wind farms for the region if the $400-million-a-year project came to fruition.

Mr Jokowis move came after the government, which is facing a legal challenge from the nations largest indigenous people group, the Pagadati, over the right of the Pagadsang, an indigenous group in the area, to operate their own renewable energy facilities.

The Pagadatsang is seeking to develop the land for energy storage, but its leaders say they have no control over what power will be generated on their land.

The ruling coalition has been pushing for a deal that would allow the Pagadian people to operate a number of offshore wind projects on their lands.

“This is an agreement which will allow the pagadatis to be able to operate these projects,” Mr Jokows spokesman Ewa Dzimbo said.

“It is an opportunity for Pagadatis, Pagadatas and Pagadis to build their own energy resources, without interference from any government.”

The government has rejected that demand and has repeatedly said the Pagadic people will not be allowed to operate any offshore wind energy projects.

Indications that Mr Jogos deal will see the Pagadas wind farm built at the country ‘s cost was further confirmed this week by Indonesia Minister for Infrastructure and Transport, Bali Binti, who said in a statement that the government was ready to provide a final amount for the Pagades wind farm and other offshore wind facilities.

“We have already signed contracts to buy most of Indonesias offshore wind, so the Pagadaas will be able, if needed, to build more offshore wind power projects in the future,” she said.

The government also plans to invest in a new wind farm to supply the Pagados, the minister said.

In the past, the government has refused to allow the sale of its offshore wind resources, saying it was illegal to sell any land without the approval of the national parliament.

Independents say the Pagadi people have fought for years to prevent the sale, but have been unsuccessful in this, as many of the offshore wind sites were built illegally.

Indos wind farms have been condemned by environmentalists and environmentalists, who say they are not renewable energy.

“Indonesians have been living in fear of a new wave of wind farms that will devastate their environment,” said John Long, a lawyer who represents the Pagadia.

“If the deal goes through, it will mean a whole new wave in the offshore development of Indonesia, which could lead to a devastating increase in the number of deaths and injuries of the people on the islands.”

The deal between the two nations will also see the purchase of much of the nation’s offshore solar and wind power plants.

Indias national electricity company said the deal would be worth $600 million a year, with the remaining $400-$500 million allocated to the Pagabatis.

Indoes national energy company said a deal would see the sale to the Indonesian government of all of the state’s offshore energy capacity, but will also be paid for by the Pagaders, Pagads and Pagas.

The deal with Australia will see $1.5 billion of the deal earmarked to finance the Pagas wind farm, the nation´s national electricity provider said.

Indies national electricity supplier Bali said the agreement would also see an additional $100 million allocated for a new project that would provide offshore wind capacity in the south of the archipelago.