July 15, 2023

Risks and Challenges of the Just Energy Transition Partnership (JETP) Indonesia

Indonesia and the developed countries that make up the International Partners Group (IPG), which is led by the United States and Japan, declared a joint commitment to establish the Just Energy Transition Partnership (JETP) at the 2022 Group of Twenty (G20) Summit in Bali, Indonesia. The partnership aims to accelerate the just and gradual energy transition process in Indonesia’s electricity sector. Through JETP, Indonesia has committed to reducing its peak greenhouse gas (GHG) emission to 290 metric tonnes of carbon dioxide (Mt CO2) by 2030, accelerating the share of new and renewable energy (NRE) mix out of its overall energy mix to 34% by 2030, and achieving Net Zero Emission (NZE) by 2050. To support Indonesia in achieving these targets, IPG members have pledged US$20 billion in funding from both their public and private sectors to finance Indonesia's energy transition projects.

The success of JETP should be a priority for the acceleration of Indonesia's just energy transition. However, JETP is not immune to various risks and challenges that may hinder or even impede its success. This policy paper aims to identify these risks and challenges so that all stakeholders involved can take steps to mitigate the potential failures of JETP Indonesia.

(ENG) JETP Policy Paper (IDN) Naskah Kebijakan JETP