IESR: At least 10% of JETP grant should go towards equitable energy transition

Jakarta – The Institute for Essential Services Reform (IESR) believes that the allocation of the grant portion in the Just Energy Transition Partnership (JETP) funding scheme needs to be increased to support the broad aspects of an equitable transition and to implement the comprehensive investment and policy plan (CIPP) document.

IESR Energy Transformation Programme Manager Deon Arinaldo said that implementing a just energy transition requires a grant portion in the JETP scheme of at least 10% to 15% or around USD 2 billion to USD 3 billion. IESR recognises that increasing the grant allocation to the scale proposed will require strong cooperation and commitment from both the Indonesian government and JETP’s international partners.

IESR also emphasises the importance of involving wider public consultation in the decision-making process related to the JETP to ensure the project more accurately reflects the needs and aspirations of the community. Greater transparency and public participation will strengthen the legitimacy of the JETP and make it more sustainable.

“As the ultimate beneficiaries, the public can provide input into the CIPP document. The public better understands the real conditions on the ground, so their participation will ensure that the equitable transition aspect, which is one of the spirits of the JETP, is reflected,” said Deon.

At the beginning of the document development process, the JETP secretariat only organised one FGD session open to the civil society community. In the second part of the document development process, the number of FGD sessions should be increased, and the draft document be shared in advance so that it can be studied before the FGD sessions.

Based on an IESR study, if Indonesia wants to meet the Paris Agreement targets, it must invest USD 1.3 trillion or an average of USD 30 billion to USD 40 billion annually to fund the energy transition until 2050. Meanwhile, until 2030, at least USD 130 billion is needed. (Hartatik)

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