This Is The Funds That RI Needs To Green Power Plants

Illustration (Photo: Doc. Antara)

JAKARTA - Head of the Indonesian Just Energy Transition Partnership (JETP) Secretariat, Edo Mahendra, gave a leak of the amount of funds that Indonesia needed to green the electricity generation system.

Edo said Indonesia needed at least 97.3 billion US dollars to green the electricity system on grids in the country from 2023 to 2030.

Just so you know, on grid is a power system connected to the main power grid or grid. Through this system, electricity can run in two directions between power users such as home or business with a general power grid.

"We estimate that the amount of funds needed will reach at least 97.3 billion US dollars, which is five times the amount of funding in question," said Edo in his remarks at the launch of the policy plan and investment commitment or comprehensive investment and policy plan (CIPP) for the JETP climate funding program (JETP) at the Ministry of Energy and Mineral Resources Building, Tuesday, November 21.

Meanwhile, so far the funding commitment agreed in a joint statement was initially worth USD 20 billion, but now with various additions has reached USD 21.6 billion, of which USD 11.6 billion comes from public funds from IPG countries, while USD 10 billion will come from international banks joining Glasgow Financial Alliance for Net Zero (GFANZ) working group.

The CIPP document formulates a decarbonization scenario that has formulated a joint conditional target of greenhouse gas emissions for the on-grid electricity sector of 250 million tons of CO2 with a portion of renewable energy reaching 44 percent by 2030.

In addition, the JETP roadmap also stipulates the achievement of zero net electricity emissions by 2050, a decade faster than the roadmap that the Indonesian government is preparing.

CIPP 2023 will focus on the on-grid electricity system.

Meanwhile, the off-grid electricity system will carry out a more in-depth analysis to establish a decarbonization strategy that is in line with Indonesia's industrialization and downstream ideals.

The CIPP document is a living document that will continue to be updated every year to always reflect the global economic conditions and domestic policy priorities.

Furthermore, Edo added, if his party ensures that JETP's priority projects can run well thanks to the release of CIPP.

"We all hope that JETP's technical support and funding can certainly be channeled to projects and activities that can be on the basis of an investment foundation for Indonesia's energy transition on a much larger scale," concluded Edo.