Indonesia has secured US$1.3 billion (Rp 21.2 trillion) in renewable energy investments through the Just Energy Transition Partnership (JETP), with a further US$6 billion (Rp 97.7 trillion) in the pipeline.

Head of the JETP Secretariat, Paul Butarbutar, said that the committed funding includes around US$200 million in grants and project financing, and US$900 million for broader programmatic support. The funds have been allocated to a range of projects operated by both state-owned enterprises and private firms.

“There is still significant room for further investment, whether in the form of concessional loans or commercial financing,” Paul said on the sidelines of the IBC 2025 Media Briefing & Talk Show in Jakarta, on Thursday, July 24, 2025.

He emphasized the ongoing opportunities within Indonesia’s clean energy transition.

Among the newly funded initiatives is the Saguling solar power plant (PLTS), backed by Germany, France, and Standard Chartered. Japan has also contributed to a geothermal energy project, while Germany’s KfW development bank is investing €300 million (Rp 5.7 trillion) in transmission infrastructure in Sulawesi.

Paul added that Indonesia is exploring further collaboration with China, citing the country’s economic strength and existing diplomatic ties as enabling factors. “There are no restrictions by nationality; any country willing to invest is welcome,” he said.

U.S. commitment

While the United States previously withdrew from the Paris Agreement under the Trump administration, its financial commitments to Indonesia under the JETP remain intact.

The U.S. has pledged to mobilize US$2 billion in support of Indonesia’s energy transition, including US$1 billion in guarantees that enable the country to access loans from the World Bank. The U.S.-World Bank guarantee agreement was formally signed on November 9, 2024, and remains legally binding regardless of subsequent political changes in Washington.

“The agreement predates the U.S. withdrawal from the Paris Accord, so it remains in force,” Paul cited, adding that U.S.-backed institutions like the Development Finance Corporation (DFC) continue to offer green investment opportunities in Indonesia.

About JETP

JETP was launched during the G20 Leaders’ Summit in Bali on November 16, 2022, as a collaboration between the Indonesian government and the International Partners Group (IPG), which includes the US, Japan, the EU, and several European nations.

The platform is designed to mobilize billions in climate finance to accelerate Indonesia’s shift away from coal and foster the development of low-carbon energy infrastructure, including solar, geothermal, and transmission grids.