G7+ Raises US$20bn to Help Indonesia's Coal Plants Retirement Program

TEMPO.CO, Jakarta - A coalition of G7+ members has agreed to help Indonesia fast-track its energy transition program by raising US$20 billion (around Rp311 trillion) over the next three to five years, through Indonesia Just Energy Transition Partnership (JETP). The partnership included efforts to shut down coal-fired power plants early and increase the use of renewable energy sources. 

Indonesia's Coordinating Minister for Maritime Affairs and Investment Affairs Luhut Binsar Pandjaitan said that the US, Japan, Norway, and other countries that are members of the partnership have expressed their support.

"This partnership supports Indonesia's ambitious targets to tackle climate change," said Luhut at the BNDCC in Nusa Dua, Bali on Tuesday, November 15.

Half of the US$20 billion funding, or US$10 billion, came from the International Partner Group (IPG). Another US$10 billion is from The Glasgow Financial Alliance for Net Zero (GFANZ).

John Morton, Climate Counselor to the Secretary of the US Department of Treasury, said that the initiative is a historical partnership with "probably the single largest climate finance transaction or partnership ever".

Indonesia seeks to accelerate the energy transition to reach net-zero emissions in its power sector by 2050. In the previous roadmap, Indonesia sets out to retire coal-fired plants prematurely and increase the use of new and renewable energy. The country is also building an electric vehicle ecosystem to reduce carbon emissions.

Over the next six months, Indonesia will be at the helm of the preparations of an action plan to reach the goals of this joint partnership.

Francisca Christy Rosana

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