Minister of Finance: PLN was asked to confirm US and Japan’s commitment regarding JETP

Jakarta – PT Perusahaan Listrik Negara (Persero) needs to ensure the realisation of clean energy funding initiated by the United States and Japan, through the Just Energy Transition Partnership (JETP) partnership fund worth USD 20 billion, the Minister of Finance said. Thus, the commitments agreed at the G20 Summit can be soon realised in Indonesia.

“PLN of course needs to follow-up (the agreement), because this is related to the energy transition from non-renewable to renewable. Later we will talk with IPPs (Independent Power Plants) that have been working with PLN,” Minister of Finance Sri Mulyani said during a press conference after attending a limited G20 evaluation meeting in Jakarta, late November.

In November, during the launch of the Energy Transition Mechanism (ETM) Country Platform in Bali, Sri Mulyani said that the government had allocated concession funds of around USD 500 million. The fund is expected to attract investments of up to USD 4 billion.

“This is perhaps the biggest follow-up because it involves the energy transition and this is a concern for both the G7 countries, China and countries in the Middle East,” she said.

Meanwhile, at the limited G20 evaluation meeting, President Joko Widodo will form a task force to follow up on various investment commitments achieved at the G20 Summit. One of them is investment in the form of clean energy funding initiated by the US and Japan.

President Widodo said the investment in question was from the United States through the Partnership for Global Infrastructure and Investment (PGII) scheme of USD 600 billion. Then, the development of electric vehicles through the Just Energy Transition Partnership (JETP) scheme worth USD 20 billion.

Meanwhile, the government is currently preparing an action and investment plan, after obtaining the JETP funding commitment. For information, the JETP funding scheme comes from a public funding commitment of USD 10 billion and the same amount from private funding coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ), which consists of Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG and Standard Chartered. The JETP partnership is led by the US and Japan, which includes G7 member countries namely, Canada, UK, France, Germany and Italy, and involves Norway and Denmark. (Hartatik)

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