The Cirata floating solar farm in in West Java. (Photo: PLN)
The Just Energy Transition Partnership (JETP) is a crucial source of funding for Indonesia’s coal phase-out efforts. Despite the U.S. stepping back from its leadership role under President Trump, Germany has confirmed it will take over that responsibility.
Additionally, the European Union and France have announced they will provide an extra €14.7 million (about 15.2 million USD) to assist Indonesia in developing renewable energy and accelerating its energy transition.
Germany assumes U.S. role, co-leads JETP with Japan
Germany's Federal Ministry for Economic Cooperation and Development issued a statement confirming that it will co-lead the JETP alongside Japan, ensuring the continuation of the $20 billion energy transition fund committed to Indonesia.
According to sources quoted by Bloomberg, JETP partners are expected to meet this month or in March to discuss the impact of the US withdrawal and to work on maintaining the energy transition funding commitments to Indonesia, Vietnam, and South Africa, totaling more than $45 billion.
The Indonesian JETP Secretariat emphasized that while the US has stepped back from its leadership role, it will still participate in the JETP program. Germany will take over the US’s position, meaning the original commitments will not be affected.
“The US financing interest is still there, because they can sell their technology to Indonesia, but if the government is hoping for grants, it might be a bit tricky because of the US’ America First policy,” Fabby Tumiwa, executive director at energy research nonprofit Institute for Essential Services Reform (IESR).
EU, France support Indonesia's green energy development
Meanwhile, to support Indonesia’s expansion of renewable energy, France and the EU launched the Indonesia Energy Transition Facility (IETF) on Feb. 5, committing an additional €14.7 million to accelerate the JETP process.
France and EU launch Indonesia Energy Transition Facility (IETF). (Photo: European Union in Indonesia)
The IETF is based on a five-year technical assistance program developed by the French Development Agency (AFD), with €10.6 million (about 11 million USD) from the EU and €4.1 million (about 4.2 million USD) from AFD.
The program is divided into two major components: supporting the development of Indonesia's energy policies and enhancing the capacity of state-owned enterprises to develop renewable energy projects.
Among these initiatives, Indonesia’s sole electricity provider, State Electricity Company (PLN), is expected to receive €6.5 million (about 6.7 million USD) to support feasibility studies and technology development for energy-related projects.
Source: Bloomberg, Jakarta Post, Jakarta Globe, Tempo
