Wahyu Dwi Anggoro
The USD20 billion funding package will be disbursed through various mechanisms, including via grants, concessional and non-concessional loans, and investments, and guarantees. The IPG's funding will direct support toward the priorities and projects identified in the CIPP, including renewable energy deployment; transmission and grid build out; managed phaseout and reduction in emissions from coal plants; and just transition initiatives.
"Japan welcomes the release of the Comprehensive Investment and Policy Plan, which shows an ambitious pathway towards the net zero. The Just Energy Transition Partnership will promote Indonesia's clean energy and economic development, which will also contribute to more sustainable, more prosperous and inclusive global economies and societies. Japan will continue to co-lead this JETP with the U.S., in coordination with the other partner countries, to support Indonesia's realistic but ambitious decarbonization transition, while respecting Indonesia's country ownership. Japan will continue to contribute to global decarbonization efforts through various initiatives including JETP," Kanasugi Kenji, Ambassador of Japan to Indonesia said in a media release.
As next steps, the Indonesian government and the IPG, supported by the JETP Secretariat, will continue to work together to implement the CIPP. The IPG and GFANZ investors are actively working to direct financing towards potential JETP projects, and Indonesia’s implementation of the CIPP’s policy recommendations will enable the business environment for renewable investments. These combined efforts are designed to help catalyze additional investments in Indonesia’s energy transition and spark a boom in Indonesia’s renewable energy sector.
“Indonesia’s roadmap to reducing carbon emissions – the Indonesia JETP Comprehensive Investment and Policy Plan – is an important milestone demonstrating Indonesia’s leadership towards reaching net zero in the power sector by 2050 and promoting economic growth powered by renewable energy," Michael F. Kleine, Chargé d’Affaires, Embassy of the US to Indonesia said. (WHY)
