Katadata (The Insights)-Indonesia and a group of developed countries announced the Just Energy Transition Partnership (JETP) at the G20 Summit in Nusa Dua, Bali.

The US, Japan, Canada, Denmark, the EU, France, Germany, Italy, Norway, and the United Kingdom are the partner countries in this collaboration, worth US$ 20 billion or around Rp310.4 trillion.

President Joko Widodo said Indonesia is committed to using the energy transition to achieve a green economy and promote sustainable development.

“This partnership will generate valuable lessons for the global community and can be replicated in other countries to help achieve our common climate goals,” he said.

This funding requires Indonesia to reduce its carbon emissions to 290 million tons by 2030. The maximum carbon emission has decreased from the initial target of 357 million tons. Indonesia is required to be ultimately emission-free by 2050.

Meanwhile, the mix of new and renewable energy (EBT) must reach 34% in 2030. The energy mix target is much higher than the 2030 electricity procurement plan (RUPTL) target of the Electricity Supply Business Plan (RUPTL) at only 23.4%.

The construction of new coal power plants must also be stopped, and there should be efforts to retire the existing power plants early.

However, Indonesia must ensure that the funding has an adequate portion of soft grants or loans. The problem is that soft and commercial debts or loans dominated South Africa’s JETP funds. The grant portion was less than 3%.

Trend Asia Researcher and Program Manager Andri Prasetiyo said the move was an act of anticipation not to burden the state in the future.

“In this way, developed countries take responsibility as parties that produce a lot of emissions,” he told Katadata.co.id on Friday, 18 November 2022.

Read more…

Photo by Pixabay