Indonesia Minister says other countries will not follow U.S. withdrawal from JETP Energy Transition Funding

A senior Indonesian Minister said that the United States' decision not to continue with the Just Energy Transition Partnership (a commitment of developed countries to fund energy transition) will have no impact on the commitments made by the other partners.

JETP, a global financing initiative that brings together rich nations with lenders from around the world to assist poorer countries adopt cleaner energy sources, has allocated $20 billion for Indonesia to reduce its emissions.

Earlier this week, the U.S. announced that it was withdrawing from its JETP agreements with Indonesia and South Africa. The U.S. commitment to Indonesia is over $2 billion. It consists of non-concessional loan, MDB guarantee, and grant.

Airlangga Hartarto, the chief economic minister, told reporters that Japan and Germany are leading the JETP finance commitments.

He said that the U.S. withdrawal would not affect the commitment of the nine countries to support Indonesia in its net-zero emission push. The net-zero goal date is 2060 or sooner.

Indonesia aims to reduce its annual carbon emissions from the on-grid electricity sector by over 50 million tonnes to 250 millions tons of carbon dioxide by 2030. It also

Plans to increase the share renewable energy in its

Power mix at 44% by 2030

From around 12% by 2022.

Airlangga stated that JETP had made funding commitments of $1.1 billion for 54 projects including the expansion Muara Laboh Geothermal Plant. He also said the country would find other forms of funding.

Indonesia is the top exporter of thermal coal in the world. It currently gets 60% of its electricity from coal, which is the most carbon intensive fossil fuel. (Reporting and writing by Fransiska Nanangoy, Editing by John Mair).

(source: Reuters)