Indonesia Reaffirms Commitment to Just Energy Transition with ETP Indonesia

Washington, INTI – Indonesia's Minister of Finance, Sri Mulyani Indrawati, reiterated Indonesia's commitment to accelerating a just energy transition through the ETP Indonesia (Energy Transition Partnership for Indonesia) program.

ETP Indonesia is a funding program designed to support a just and sustainable energy transition in Indonesia. The program is initiated by public funds from the IPG (International Partners Group) and private funds through The Glasgow Financial Alliance for Net Zero (GFANZ).

"ETP Indonesia is one of the concrete achievements of Indonesia at the G20 Presidency Summit in Bali in 2022," explained Minister of Finance Sri Mulyani, as conveyed on her official Instagram account @smindrawati.

Recognizing the importance of global collaboration in achieving a successful energy transition, Minister of Finance Sri Mulyani, along with finance ministers from IPG and other JETP member countries, attended a discussion organized by the Global Energy Alliance for People and Planet (GEAPP), South Africa's Presidential Climate Commission, World Resources Institute (WRI), and supported by the World Bank.

"In this discussion, we discussed various efforts and improvements that need to be made in implementing a just energy transition," said Minister of Finance Sri Mulyani.

In Indonesia, collaboration with the IPG in developing the JETP Comprehensive Policy and Investment Plan was launched in November 2023. This plan has ambitious targets, namely to achieve a renewable energy share of 44% of the national energy mix by 2030 and achieve net-zero emissions for the electricity sector by 2050.

"In the discussion with JETP member countries, we discussed the funding structure, where there is a grant portion of 3% of the public fund commitment, and around 60% is concessional loans," explained Minister of Finance Sri Mulyani.

Emphasizing the importance of easily accessible and accountable funding, Minister of Finance Sri Mulyani said that in Indonesia, ETP funding can be channeled through PT Sarana Multi Infrastruktur (Persero) (PT SMI) in order to carry out the task of realizing the Energy Transition Mechanism (ETM) - Country Platform for national energy transition.

"As a catalytic fund, Indonesia also proposes that JETP funding can be channeled through the ETM-Country Platform," said Minister of Finance Sri Mulyani.

Minister of Finance Sri Mulyani also said that Indonesia has shown good progress in energy transition, with several projects that are priorities and target-oriented in 2024 within the JETP framework.

"We need the proactive role of all parties so that the coordination between IPG member countries and intermediary financial institutions is smoother and more cohesive," concluded Minister of Finance Sri Mulyani.