Indonesia Gears Up to Implement JETP, Releases CIPP Document

TEMPO.CO, Jakarta - The Just Energy Transition Partnership (JETP) financing scheme is entering a new stage. According to the Ad-Interim Minister of Maritime and Investment Affairs Erick Thohir, the release of the Comprehensive Investment and Policy Plan (CIPP) document marked the end of the JETP planning stage.

"[JETP] is entering its implementation stage and Indonesia is serious about it," he said during the CIPP launch at the Ministry of Energy and Mineral Resources office in Jakarta today, Tuesday, Nov. 21.

This commitment, Erick said, is in line with the national blueprint of Golden Indonesia 2045 Vision, which highlighted several priority targets of inclusive clean energy, boosting human resources quality, pushing for economic growth, and reducing poverty rate.

"The CIPP document provides a strategic roadmap for the ambitious energy transition in Indonesia by considering challenges, including technical challenges, financial, policies, and social justice," he said.

Furthermore, Erick said that Indonesia has taken critical steps to bolster the energy transition, such as supporting the development of new renewable energy, green industrialization, and strengthening the electrification of key sectors, namely transportation.

"We definitely hope that JETP could strengthen these steps starting from these priority projects as provided in the CIPP document," he said.

Erick said that these cooperations must be improved and accelerated to implement the previously agreed priority projects. "Including the financing commitment included in the [CIPP] document, since 2030 is less than seven years away," he added.

As information, the CIPP document drafted a decarbonization scenario targeting GHG emissions reduction within the PLN grid to 250 million tons of carbon dioxide and 44% renewable energy in 2030 

Meanwhile, the JTEP financing scheme has been hiked up to US$21.6 billion from the initial of US$20 billion. The US$11.6 billion would come from International Partners Group (IPG) nations while the rest comes from the Glasgow Financial Alliance for Net Zero (GFANZ) working group.

DEFARA DHANYA PARAMITHA

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