Jakarta – Climate Policy Initiative (CPI) Indonesia said in a press release on Thursday, February 6, that coal levies could be used for Investment Focus Areas (IFA), especially in the development of electricity transmission and distribution networks as part of the Just Energy Transition Partnership (JETP) scheme.
“Indonesia has financial resources that could be better managed. If the budget from coal is utilised for renewable energy, the target of 34% energy mix by 2030 will be more realistic,” said Tiza Mafira, Director of Climate Policy Initiative (CPI) Indonesia.
Currently, annual investment in renewable energy in Indonesia is still far from what is needed. CPI data shows that the average investment in renewable energy during 2019-2021 only reached USD 2.2 billion per year, while the investment needed to achieve the 2060 net-zero emissions (NZE) target is estimated at around USD 9.1 billion per year.
According to JETP data, Indonesia needs around USD 19.7 billion by 2030 to strengthen the electricity grid and support renewable energy integration. With increased coal levies, this funding need can be met without relying on foreign loans. (Hartatik)
