Jakarta—The Institute for Essential Services Reform (IESR) welcomes the formation of the Energy Transition and Green Economy Task Force (TEH Task Force). According to IESR Executive Director Fabby Tumiwa, the Task Force should immediately optimise the implementation of the Just Energy Transition Partnership (JETP) and Energy Transition Mechanism (ETM) to overcome barriers to renewable energy investment in Indonesia.
“The establishment of the TEH Task Force shows the government’s commitment, but to achieve the real energy transition target, we must strengthen the role of JETP and ETM. This is not only about achieving emission targets but also about ensuring well-targeted funding flows for clean energy projects,” Fabby said in a statement on Friday, 21 March.
Fabby revealed that amid investment challenges that are still far from the target – in 2024, investment only reached USD 1.8 billion compared to the target of USD 2.6 billion – the TEH Task Force must be able to bridge the gap between the vision of the energy transition and the reality on the ground. He adds,
“Data from the Unlocking Indonesia’s Renewable Future study shows the potential of renewable energy projects reaching 333 GW from 632 locations. This data should be a reference for the Task Force to compile a prioritised list of projects worthy of funding through JETP and ETM.”
Fabby also highlighted that the implementation of energy transition policies must be in line with international commitments, such as the Paris Agreement and the Bali Energy Transitions Roadmap. “Europe will soon implement a stricter carbon tax. Indonesia must prepare its industry to remain competitive. This is where the TEH Task Force plays an important role in integrating JETP and ETM so that the energy transition can run quickly and effectively,” he added.
He stressed that the Task Force should be a forum for cross-sector coordination, not only between ministries, but also involving civil society organisations and the private sector. “Inclusive and transparent communication is key to overcoming investment barriers and optimising the flow of funds towards renewable energy,” Fabby concluded.
With these steps, IESR hopes the government can accelerate the energy transition, reduce dependence on fossil fuels, and ensure Indonesia can meet its emission reduction targets and achieve net zero in the future. (Hartatik)
Banner photo: Narcisa Aciko/pexels.com
