Wahyu Dwi Anggoro
IDXChannel - The International Partners Group (IPG) have welcomed the launch of Indonesia’s Just Energy Transition Partnership (JETP) Comprehensive Investment and Policy Plan (CIPP).
The group is co-led by the United States (US) and Japan and comprised of Canada, Denmark, the European Union (EU), Germany, France, Norway, Italy, and the United Kingdom (UK).
Launched in Jakarta on Tuesday (21/11/2023), the CIPP is a roadmap for the government of Indonesia and the IPG to achieve the objectives laid out in the JETP Joint Statement, announced at the G20 Leaders’ Summit last year in Bali. Under the Joint Statement, Indonesia committed to limit emissions, accelerate renewable energy development, and set a goal to achieve net zero emissions in the power sector by 2050. To support these ambitious targets, the IPG committed to mobilize USD10 billion in financing and the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions committed to accelerating the net-zero transition, committed to mobilizing and facilitating another USD10 billion in financing.
The culmination of a year’s worth of work, the CIPP maps out a technical pathway for Indonesia’s power sector, recommends policy changes needed to successfully transition the power sector, and outlines a just transition plan. It also serves as the basis to drive the USD20 billion in JETP financing toward specific projects and priorities for Indonesia’s energy transition.
The CIPP technical pathway focuses initially on Indonesia’s on-grid power sector. Under the CIPP technical pathway for the on-grid system, Indonesia’s on-grid system will emit no more than 250 MT CO2, down from a baseline of 305 MT, and will achieve 44% renewable energy generation share by 2030. The partnership will work together to complete an analysis of Indonesia’s off-grid power sector in the coming months. This analysis will serve as the basis for implementing the necessary measures to achieve a comprehensive energy transition.
