Jakarta – The government appointed the Ministry of Energy and Mineral Resources (EMR) as the secretariat of the Just Energy Transition Partnership (JETP) to realise new renewable energy development projects worth USD 20 billion. JETP is an energy transition fund through an international partnership led by the United States and Japan, agreed at the G20 Summit in November 2022 in Bali.
Minister of Energy and Mineral Resources, Arifin Tasrif said, the secretariat’s output for the next six months will be completing a roadmap for early retirement for coal-fired power plants (PLTU), mobilising investment and supporting the financing mechanism as outlined in the Comprehensive Investment Plan (CIP).
“The JETP Secretariat has been formed and officially has an office at the Ministry of Energy and Mineral Resources. This place will be the centre for information, planning and coordination, as well as monitoring and evaluation of the implementation of the JETP project as instructed by the Task Force Team,” Tasrif said in a recent press statement.
Furthermore, he said, the function of the JETP secretariat is as a coordination layer for the task force team and technical implementation, and is expected to produce a beneficial impact to support the achievement of JETP targets. “The first task of the task force team is to organise a working group to accelerate the JETP energy transition program, namely the power generation system, financing, decarbonization of the power sector, supply chain and manufacturing, as well as a socially just energy transition,” said Tasrif.
The Director General of New, Renewable Energy and Energy Conservation (EBTKE), Dadan Kusdiana added, the JETP Secretariat started operating on Friday (17/2), and will start carrying out its tasks and programs, including developing clean energy, accelerating early retirement for coal power plants, and energy efficiency improvement programs, as well as development of EBT supporting industries.
Assistant Secretary of the U.S. Treasury for International Trade and Development, Alexia Latortue, also said that the JETP Secretariat would support the Government of Indonesia in achieving the JETP target, including a comprehensive investment and policy plan, which reflects targets for reducing greenhouse gas emissions and most importantly to support the community affected.
“Indonesia’s just energy sector transformation requires many partners and tools. The JETP Secretariat is a place where these come together in the service of our shared commitments,” said Latortue.
JETP funding is expected to accelerate the decarbonization in the electricity sector with the target of peaking emissions in 2030, not exceeding 290 million tonnes of CO2, or 67 million tonnes of CO2 lower compared to the BaU baseline value of 357 million tonnes of CO2. The funding is also expected to achieve net zero emissions in the electricity sector by 2050, or 10 years faster than the initial projection, and accelerate the use of renewable energy by at least 34% sourced from renewable energy by 2030.
The JETP governance structure consists of three levels, namely the Indonesian policy layers decarbonization task force and IPG task force, the JETP secretariat, and project implementation. PT Sarana Multi Infrastruktur (PT SMI), as the country platform, coordinates at the project level for the transaction layer. PT SMI as the funding manager will partner with the Glasgow Financial Alliance for Net Zero (GFANZ) consisting of Bank of America, Citibank, Deutsche Bank, HSBC, Macquarie, MUFG and Standard Chartered as well as other multilateral development banks. (Hartatik)
Banner photo: US State Dept./Budi Sudarmo