Indonesia Receives JETP Fund Capai 1.1 Billion US Dollars

JAKARTA - Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed that in the implementation of the Just Energy Transition Partnership (JETP) in Indonesia, there were 54 projects that had received international funding support with a total commitment of US$1.1 billion or equivalent to Rp18.2 trillion (exchange rate of Rp16,550 per US dollar.

Airlangga said the project consisted of 9 projects obtaining funding in the form of loans or equity and 45 other projects receiving grants worth US$233 million.

In addition, Airlangga said that IPG had also secured a guarantee worth US$1 billion through the Guarantee Multilateral Development Banks (MDB) to accelerate the implementation of clean energy transition projects.

In addition, Airlangga said that Germany and Japan remain committed as co-leaders in JETP funding even though the United States (US) has resigned.

"So this commitment to JETP is being continued and the target is to support the energy transition in Indonesia to Net Zero Emission (NZE) by 2060 or sooner," he explained at a press conference, Monday, March 24.

Airlangga conveyed that through the Coordination Meeting of the Coordinating Minister for Economic Affairs, JETP was accelerated by revising The Comprehensive Investment and Policy Plan (CIPP) to be more in line with economic conditions, regulations, and national infrastructure readiness.

In addition, Airlangga added that the acceleration of the implementation of JETP is also related to the disbursement and optimization of the funding scheme.

"Building a digital-based monitoring and evaluation system that stakeholders can access and improve coordination and periodic evaluation," he explained.

Airlangga said that related to funding, there are various financing packages that are adjusted to existing projects.

He gave an example, such as the Muara Labuh project which was discussed in the previous meeting, namely between President Prabowo and Japanese Prime Minister (PM) Ishiba Shigeru.

In addition, Airlangga said that this project was ongoing and was expected to be completed in 2027.

"For example, the estuary of the village. It was discussed at the meeting of Mr. President Prabowo and Prime Minister Ishiba. And this is an on going project and is expected to be completed in 2027," he said.

In addition, Airlangga conveyed another project, namely early retirement of Steam Power Plants (PLTU) in Indonesia, namely from the Cirebon Power PLTU which was also financed by the Asian Development Bank (ADB).

"One of the projects is also a decarbination of the cirebon or phasing out, now there is also involvement from the Asian Development Bank. Then there is a photovoltaic project, both in Saguling and in Citata," he said.

Airlangga said All of these projects are in the planning and implementation stage.

"So it's all on the pipeline," he said.