The Government of Indonesia, European Union (EU) and the International Partners Group (IPG) have launched the Just Energy Transition Partnership (JETP) to gradually reduce the country’s dependence on coal-fired energy. The partnership also aims to achieve peak emissions for the power sector by 2030, seven years earlier than previously announced while the zero-emissions target has been set for 2050.

Members of the EU and multiple G20 governments will mobilise USD20 billion to support JETP Indonesia, making it the largest single climate financing transaction till date. Out of the total, IPG will contribute around USD10 billion while EU and member states will mobilise around USD2.5 billion. The funds will be provided through public and private financing sources over a period of three-five years.

To highlight the Government of Indonesia’s commitment, a decree is expected to be released by the end of November 2022 to speed up the deployment of renewable energy (RE) to achieve at least 34 per cent share of total power mix by 2030.