Indonesia negotiating funding cooperation for energy transition
Jakarta, Indonesianpost.com – The Indonesian government is negotiating cooperation with the International Partners Group (IPG) for the Just Energy Transition Partnership (JETP) program, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan informed on Tuesday.
“We plan to announce a joint statement on JETP within the G20 Presidency with IPG countries in Bali on November 15, 2022,” he said during the “Energy Transition on Achieving Net Zero Emission a High Call for Urgency” talk show at the United Nations Climate Change Conference (COP-27) in Egypt, which was streamed online on Tuesday.
Indonesia is ready to implement the JETP program, he added.
The program will involve the phase-down of coal power plants and a significant reduction in greenhouse gas emissions.
The Indonesian government has said that the energy transition should be just and affordable to improve clean energy transition driven by a sustainable financing mechanism, Minister Pandjaitan stressed.
It has also formulated a presidential regulation on the development of renewable energy for the provision of electricity, he added.
This action will create a framework that broadly allows a clean energy transition. It is also in line with the road map and guidelines for expediting the transition from coal to clean energy, the minister said.
The road map considers the post-retirement plan for decommissioning or repurposing coal plants using low carbon emission technology to ensure energy security for the growth of the Indonesian economy, the minister explained.
Energy transition funding schemes, such as the JTP, have become one of the main tools for supporting Indonesia’s energy transition.
This is because Indonesia requires investment worth US$25 million–30 million until 2030 to expedite the energy transition.
The JETP program is capable of supporting Indonesia by providing real value through donations, soft loans, or market investments, Coordinating Ministry for Maritime Affairs and Investment deputy Nani Hendiarti said, according to the ministry’s website.
Fair transition is a mitigation action for reducing CO2 emissions to help Indonesia become worthy of receiving international support and make its Nationally Determined Contributions target more ambitious, she stressed.
She said she believes that, through JETP, Indonesia will be able to achieve the carbon emission reduction target of 31.9 percent without conditions and 43.2 percent with international support.
“The presidential regulation on renewable energy development acceleration has been signed,” she added.
“We are ready to reduce greenhouse gas emissions through the energy transition, including early retirement of coal power plants and the development of renewable energy,” she said.