Indonesia has launched its renewable energy investment plan under the country’s Just Energy Transition Partnership (JETP), intended to mobilise US$21.6bn in financing from global lenders, led by the United States and Japan, to accelerate Indonesia’s power sector decarbonization. Under its JETP, the country plans to cut emissions to 250 MtCO2 for its on-grid power sector by 2030, compared to an estimated business-as-usual emissions of over 350 MtCO2.
The funding commitment agreed upon in the joint statement was initially worth US$20bn, but following various additions, it has reached a total of US$21.6bn. US$11.6bn will come from public funds from States, while US$10bn will come from international banks that have joined the Glasgow Financial Alliance for Net Zero (GFANZ) working group.
Indonesia’s investment plan, known as the Comprehensive Investment and Policy Plan (CIPP), states that Indonesia aims to increase the share of renewable energy in its power generation to 44% by 2030 (18% in 2022). The plan also indicates that a total investment worth US$97.3bn is needed to achieve the country’s targets, including US$66.9bn for 400 projects which need to be commissioned by 2030 at the latest. The US$21.6bn mobilised under the JETP is expected to jumpstart this energy transition.
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