Indonesia is making steady progress in its preparations for an energy transition program funded by the Just Energy Transition Partnership (JETP). In a recent development, the JETP Secretariat has officially launched a public consultation to gather input on the Comprehensive Investment and Policy Plan (CIPP), which is poised to become the cornerstone of energy transition funding in Indonesia.
Energy transition is undeniably a matter of public interest, and the JETP initiative stands as a crucial component of Indonesia’s national energy transition efforts. Edo Mahendra, the Head of the JETP Secretariat, expressed the significance of this step, stating, “Therefore, we are releasing the draft investment plan of JETP with the hope of gathering input from all sectors of society.” This reflects the commitment to inclusivity in shaping the nation’s energy future.
The CIPP document, a key instrument in this transition, is now accessible to the public through the newly launched website www.jetp-id.org. Citizens and stakeholders alike have the opportunity to contribute their insights and perspectives on this investment plan via the designated input form on the JETP website.
The JETP partnership, an ambitious funding initiative for energy transition valued at over US$20 billion, or roughly Rp310 trillion, was forged through the collaboration between Indonesia and advanced nations within the International Partners Group (IPG).
The G20 High-Level Conference in Bali in November 2022 witnessed the formalization of this significant agreement, with the IPG comprised of nations such as Japan, the United States, Canada, Denmark, the European Union, Germany, France, Norway, Italy, and the United Kingdom.
The establishment of the JETP Secretariat in Indonesia, commencing operations in April 2023, has facilitated a harmonious coordination effort. This effort encompasses the collaborative development of the CIPP document, which involves both the Indonesian government and the IPG. The involvement of working groups, representing a wide array of stakeholders from international organizations, think tanks, energy cooperation programs, and civil society, underscores the comprehensive approach taken.
Edo emphasized that the CIPP document will undergo annual updates to ensure it remains attuned to evolving global economic dynamics and domestic developmental priorities. Public participation is strongly encouraged, as it is seen as an integral component in the ongoing effort to enhance the document’s effectiveness in supporting the implementation of this transformative partnership.
The period for public input extends until November 14, and the JETP Secretariat will diligently process the contributions received. These inputs will serve as the foundational elements in the finalization of the CIPP document, a pivotal instrument for the JETP’s endeavors.
Anticipated to precede the global climate change event, the 28th Conference of Parties (COP-28) in Dubai, United Arab Emirates, at the close of this year, the formal launch of the CIPP document in Indonesia is poised to play a significant role in advancing the cause of sustainable energy transition on the international stage.
As previously reported, President Joko Widodo, commonly known as Jokowi, has issued instructions for the initiation of early retirement funding for coal-fired power plants (PLTU) within this year. This initiative is strategically timed to align with the COP-28 event in Dubai, United Arab Emirates (UAE), scheduled to take place from November 30, 2023, to December 12, 2023.
At present, the ministry is in the final stages of crafting the roadmap for the early retirement of PLTUs. This document will serve as a guiding framework for funding, encompassing a blend of international and domestic financing mechanisms, including the state budget (APBN). This signifies a comprehensive approach to drive Indonesia’s energy transition goals forward.