Sunday, December 10, 2023

Indonesia to reveal energy transition plan in November, prior to the COP 28 summit

Reading Time: 2 minutes
Mahinda Arkyasa




Indonesia is set to reveal its US$20 billion energy transition investment plan in the coming month, ahead of the UN COP28 climate summit.

The plan, known as the Just Energy Transition Partnership (JETP), was initially scheduled for launch in mid-August but faced delays due to various issues, such as disagreements on funding details and Indonesia’s reliance on coal for electricity.

The new timeline aims to present JETP’s plans for public feedback on November 1, followed by an official launch around November 20, according to Paul Butarbutar, deputy secretary of Indonesia’s JETP office.

When asked if the International Partners Group (IPG), which includes countries like the United States and Japan, along with development banks and private lenders, is expected to approve the investment plan by then, Butarbutar mentioned that content agreement would come first, while funding details would be addressed later.

Indonesia has committed to capping and peaking the power sector’s carbon emissions at 290 million metric tons by 2030 as part of the JETP, with financial support from the IPG through a mix of equity investments, grants, and concessional loans.

Indonesian authorities have expressed concerns that Western nations are hesitant to finance the early retirement of coal-fired power plants, which is necessary to make way for renewable energy projects.

Currently, more than half of Indonesia’s electricity capacity, as the world’s leading thermal coal exporter, relies on coal.

Support from Minister of Finance

Finance Minister Sri Mulyani Indrawati has also advocated for an increase in grants within the fund to reduce interest rates. The delay in August was attributed to the need to ensure that proposals account for additional coal power plant capacity being constructed off-grid by industrial companies, including remote nickel smelters.

In summary, Indonesia plans to unveil its US$20 billion energy transition investment plan in November, addressing issues surrounding funding and the energy mix for the initiative.

The delay was caused by various challenges, and the release is now scheduled for public feedback in early November, with the official launch set for later in the month.

The agreement on content will precede discussions on funding. The plan is crucial for Indonesia to reduce carbon emissions and transition away from coal in its power sector, with a focus on obtaining financial support from international partners.

Mahinda Arkyasa






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The Attorney General’s Office questioned Acep Jamhuri, Secretary of Karawang Regency, in a corruption case tied to Army Housing Mandatory Savings (TWP AD) for 2019-2020
The $30 billion legacy initiative in East Kalimantan faces uncertainty due to the revelation that several foreign investment commitments have not materialized, sparking speculation about overseas skepticism.
PT Perusahaan Listrik Negara (PLN) has successfully secured four significant agreements aimed at expediting the incorporation of renewable energy sources during the United Nations Climate Change Conference, COP 28, held in Dubai, United Arab Emirates over the past weekend.
PT Indonesia Stock Exchange (BEI) recently announced PT Waskita Karya Tbk (WSKT) to be removed from the stock exchange or delisted which has a direct impact on investors.
The National Council of Special Economic Zones (SEZ) has given the green light for the creation of three new SEZs—Setangga, Tanjung Sauh, and Nipa, in an effort to boost economic development. 
The Association of Southeast Asian Nations (ASEAN) spans an incredibly diverse geography, covering approximately 4.5 million square kilometers, making it one of the world’s largest regional organizations in terms of landmass.