Regarding JETP Funding Becomes A Debt Trap, This Is What The National Energy Transition Task Force Says

JAKARTA - The Head of the National Energy Transitional Task Force Implementation Team, Rachmat Kaimuddin, opened his voice about the possibility of funding the Transmission of Fair Energy (Just Energy Transitions Partnership (JETP) into a debt trap for Indonesia.

Rachmat ensured that the funding would not become a debt trap for Indonesia.

"From us, we will definitely keep it so that later we are forced to do something we don't need," said Rachmat Kaimuddin when met at the Ministry of Energy and Mineral Resources Building, Tuesday, November 21.

For information, quoted from the Comprehensive Investment and Policy Plan (CIPP) document released by the Government of Indonesia together with JETP, Indonesia requires funding of at least US$97.3 billion or equivalent to Rp15 quadrillion to green the on-grid electricity system in Indonesia until 2030.

Rachmat added, to ensure that it does not become a trap, the government will only build infrastructure according to domestic needs.

"So in our opinion, so far it's not like we shouldn't make something that we don't need. So that's what we need to do, or don't make something that's not productive. That's what we need to take care of here. As long as the needs are productive, it's okay to use debt, but if not, then don't," explained Rachmat.

He acknowledged that power plants are important to meet the energy needs of domestic industries.

Moreover, to build a green power plant, funding is needed which is not small and can be obtained through investment.

"We are in accordance with our energy needs, our industrial needs, we will definitely need energy and if we need energy, we will need a generator. If we need a generator, we will need investment. And usually investment must have debts, as well as all kinds of things," concluded Rachmat.

For information, JETP's own funding composition consists of non-concession funding of USD 1.59 billion, concession funding of USD 6.94 billion, equity investment of USD 384.5 million, grants and technical assistance of USD 295.4 million, guarantee of USD 75 million, multilateral guarantee of USD 2 billion, and other forms of USD 270.3 million.