Indonesia's Just Energy Transition Partnership to continue despite US withdrawal: official

The Indonesian government has assured that the financing program under the Just Energy Transition Partnership (JETP) to phase out coal and accelerate renewable adoption will continue despite the US withdrawal, a senior official said March 24.

Earlier in the year, the Trump administration's climate reversal raised concerns among Indonesian regulators and industry stakeholders about whether the country could still secure enough financial support for a timely energy transition.

The Indonesian government's latest message offers an encouraging signal to ease these concerns.

"Germany and Japan remain co-leads of JETP, even though the US has withdrawn. This is a commitment to continue JETP. The target is to support Indonesia's energy transition toward net-zero emissions by 2060 or earlier," Coordinating Minister for Economic Affairs Airlangga Hartarto said.

The JETP program, launched in November 2022, has been regarded as a key enabler in financing Indonesia's energy transition. Under JETP, an international partner group of developed countries is expected to mobilize $20 billion in public and private funding to help Indonesia finance the early phaseout of coal and the deployment of renewables.

Several international organizations, including the Glasgow Financial Alliance for Net Zero (GFANZ), the World Bank and the EU, continue to support JETP, Hartarto said, emphasizing that Washington's exit will not affect funding commitments, and Indonesia will still receive the $20 billion.

Under the JETP implementation, 54 projects have secured international funding commitments totaling $1.1 billion, the official said. Of this amount, nine projects received financing through loans or equity, while the remaining 45 projects were awarded grants totaling $233 million, the official added.

Additionally, Hartarto said that the International Partners Group (IPG) has secured a $1 billion guarantee through a multilateral development bank guarantee scheme to accelerate clean energy transition projects in Indonesia.

Some major projects funded by the JETP include the Muara Laboh geothermal development in West Sumatra, which is targeted to begin operations in 2027. Other pipeline projects include a photovoltaic project in Saguling and the decarbonization of the Cirebon power plant. A waste-to-energy project in Legok Nangka, West Java, is also being proposed for JETP funding.

To achieve the emissions reduction target of 31.89% independently and 43% with international funding support by 2030, the government has also established an energy transition and green economy task force, according to Hartarto.

He emphasized that the government will maintain cross-ministerial coordination to ensure smooth fund disbursement and will conduct digital-based monitoring and evaluation.