Jakarta—The Indonesian government is facing a critical period in its energy transition and is capitalising on the huge opportunities arising from the Just Energy Transition Partnership (JETP) with several global partners. The program aims to support Indonesia’s energy transition plan from 2021 to 2030 and is predicted to open up billions of dollars of investment opportunities in the renewable energy sector.
Prof. Eniya Listiani Dewi, Director General of New Renewable Energy and Energy Conservation (EBTKE), emphasised that JETP is in line with the 2021-2030 Electricity Supply Business Plan (RUPTL), which prioritises investments worth USD 15.9 billion for renewable energy projects. She said the program supports expanding renewable energy infrastructure while boosting the domestic industry.
“The government has issued Minister of Energy and Mineral Resources Regulation No. 11/2024 to strengthen the utilization of local products in energy infrastructure, which aims to attract more investment and accelerate the energy transition,” Eniya explained at the opening of the Indonesia Energy Transition Dialogue (IETD) 2024, Monday, November 4.
The British Ambassador to Indonesia and Timor Leste, Dominic Jermey, explained his country’s commitment, which has now closed the last coal power plant and is 100% free from coal-based energy. In a global context, the UK is working with Indonesia through JETP to help meet Indonesia’s decarbonisation targets.
“The JETP enables investment flows that support Indonesia’s target of achieving higher renewable energy, with more than USD 800 million already approved and additional funding of USD 5-6 billion under negotiation,” Jermey said.
Meanwhile, Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), said that the government’s commitment to accelerating renewable energy will attract new investments that increase the national economic contribution.
“It is necessary to increase the renewable energy mix and policies that support the development of clean energy technology. This will encourage the growth of domestic manufacturing to meet the demand for clean energy technology,” Fabby said.
The Prabowo-Gibran government also hopes this strategy can improve Indonesia’s overall economic competitiveness. Investment growth in the clean energy sector and the creation of new jobs are expected to strengthen national energy security and attract investors in the downstream industry sector.
IETD 2024, which took place on November 4-6, brought together more than 50 speakers from various countries to exchange ideas and strategies for the energy transition. The results of the IETD 2024 discussions will be used as policy recommendations for the next five years, in line with achieving energy independence and substantially reducing carbon emissions in Indonesia. (Hartatik)
Banner photo: The opening of the Indonesia Energy Transition Dialogue (IETD) 2024, which will bring more than 50 speakers from various countries to exchange ideas and strategies on energy transition, was held in Jakarta on Monday, November 4. (IESR/handout)
