JETP Kicks Off Captive Power Study

On November 15, 2022, the Government of Indonesia (GoI) and the International Partners Group (IPG) launched the Just Energy Transition Partnership Indonesia (JETP Indonesia) on the sidelines of the G20 Summit in Bali, Indonesia. The IPG comprises the governments of Japan and the United States, who are co-leaders of the partnership, and Canada, Denmark, the European Union, the Federal Republic of Germany, the French Republic, Norway, the Republic of Italy, and the United Kingdom of Great Britain and Northern Ireland.

At an initial commitment of US$20 billion, of which US$10 billion in IPG funding was pledged to catalyze US$10 billion of private financing from Glasgow Financial Alliance for Net Zero (GFANZ), JETP Indonesia marks the largest energy transition financing package in the world to date. Its immediate objective is to develop a Comprehensive Investment and Policy Plan (CIPP), a process that would be led by the JETP Secretariat. The CIPP is intended to be a "living document" that will be regularly evaluated and updated to reflect recent market developments and policy priorities.

JETP CIPP is developed to ensure consistent view of transition pathways:

Positive contribution towards Indonesia's economy and ensure energy affordability

Ensure energy security and grid stability while ensuring just transition

Ensure achievement of joint target and carbon emission in line with government ambition

For Indonesia, energy transition is a key step to mitigate the impact of the climate crisis, meet the Nationally Determined Contribution (NDC) targets, and realize its ambition to build a low-carbon economy. This transition actively supports Indonesia's industrialization trajectory while decoupling the long-standing historical correlation between economic growth and emissions. To do this, energy transition must decarbonize both the power sector and its interdependent demand-side sectors and industries. Given the uniqueness of each country's situation, energy transition needs to be country-led and country-owned.

Acceleration of dispatchable RE deployment

Early coal-fired power plant retirement

Transmission and grid expansion

RE value chain enhancement

Acceleration of variable RE deployment