The Indonesian government has reaffirmed its commitment to the Just Energy Transition Partnership (JETP) despite the United States’ recent withdrawal from the initiative. Chief Economic Minister Airlangga Hartarto stated that the exit of the U.S. will not weaken the commitment of other JETP partners, including Japan and Germany, who have now taken over leadership of the funding program.

JETP is a financing commitment from developed nations and global financial institutions aimed at assisting emerging economies in transitioning to cleaner energy sources. The program has allocated $20 billion to Indonesia to support efforts in reducing carbon emissions and increasing renewable energy adoption.

JETP Targets: Reducing Carbon Emissions and Expanding Renewable Energy

Indonesia aims to lower its annual carbon emissions from the on-grid power sector by more than 50 million tons, bringing total emissions down to 250 million tons of carbon dioxide equivalent by 2030. Additionally, the government plans to raise the share of renewable energy in the national power mix from approximately 12% in 2022 to 44% by 2030.

To support these goals, JETP has pledged $1.1 billion in funding for 54 renewable energy projects across the country. One of the key projects under this framework is the expansion of the Muara Laboh geothermal plant, a crucial step in boosting Indonesia’s clean energy production.

Indonesia Seeks Alternative Funding Sources for Energy Transition

Despite the U.S. pulling out of JETP, Indonesia remains determined to secure funding through other financial mechanisms. Minister Airlangga emphasized that the country will continue to seek alternative investment sources to sustain its energy transition agenda.

Indonesia, as the world’s largest thermal coal exporter, currently relies on coal for approximately 60% of its energy supply. The government’s commitment to JETP is expected to accelerate the shift away from coal and toward a more sustainable energy sector.

PHOTO: ANTARA/M AGUNG RAJASA

This article was created with AI assistance.