Government shifts strategy for use of JETP funds from early retirement of power plants to power grids

Jakarta – The Indonesian government has announced a change in strategy in the use of Just Energy Transition Partnership (JETP) funding by shifting the focus from early retirement of coal-fired power plants (PLTU) to grid development.

Minister of Energy and Mineral Resources Arifin Tasrif explained that the government is trying to fix the power grid infrastructure first to maximise the overall utilisation of energy resources. According to him, this decision was taken because it was considered more effective and urgent, considering that selecting power plants to be retired took quite a long time.

“We seem to fix the network infrastructure first to optimise everything. Then we can see where the balance is and create a new balance too,” he said in an official statement.

This step has received a positive response from donor countries committed to supporting Indonesia’s electricity infrastructure development. Arifin explained that donors had welcomed this plan, and mapping has been carried out of plants with the potential to retire with clear evaluation criteria.

In addition, this change in focus is also in line with the General Plan for Electricity Supply (RUPTL), which currently needs to be fully realised.

“This RUPTL will determine which infrastructure needs to be prioritised. The current one has not been achieved. There is no new proposal yet. We want to evaluate yesterday’s RUPTL reference, where the problems are, why it didn’t happen, and which ones we must improve,” Tasrif said.

With this change in strategy, he said that he hoped the development of electricity network infrastructure could be accelerated to achieve more optimal results and significantly impact Indonesia’s energy sector and economic growth. (Hartatik)

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