Jakarta – Indonesia, through the Just Energy Transition Partnership (JETP), has received USD 1.1 billion in international funding support for 54 clean energy projects, according to Coordinating Minister for Economic Affairs Airlangga Hartarto in a press conference on Monday, 24 March.
This funding initiative, partly in the form of loans and equity for 9 projects and grants totalling USD 233 million for 45 other projects, is led by developed countries in the International Partners Group (IPG) led by Germany and Japan.
Airlangga stated that this achievement is part of the government’s efforts to achieve the target of using green energy between 31.89% independently and 43% with international financial support by 2030. “To realise this target, we have formed the Green Energy and Economy Transition Task Force,” he said.
The task force has four main working groups: green energy, green industry, green partnership and investment, and socio-economic and human resource development. According to Airlangga, the formation of the task force is evidence of Indonesia’s commitment despite the challenges of transition funding, especially after the withdrawal of support from the United States, which withdrew its participation in the Paris Climate Agreement.
“Despite the US withdrawal, the JETP commitment continues. We aim to support Indonesia’s energy transition to net zero emission by 2060 or sooner,” he added.
Airlangga also mentioned that several flagship projects, such as the biothermal programme in Muara Labuh, West Sumatra, are expected to begin operations in 2027.
“We have various projects in the pipeline, ranging from photovoltage in Saguling to decarbonisation initiatives and phasing out of carbon power plants, all of which are under intensive discussion,” he explained.
He concluded by emphasising the importance of cross-ministerial coordination to ensure the disbursement of funds and the smooth implementation of energy transition projects.
“We will continue to encourage the disbursement of financing from various sources so that Indonesia’s energy transition target can be realised quickly and optimally,” Airlangga concluded. (Hartatik)
Banner photo: Coordinating Minister for Economic Affairs Airlangga Hartarto/Screenshot, Coordinating Ministry for Economic Affairs (PerekonomianRI) Youtube channel
