The Next Six Months Are The Indonesian Krucial Period In The Energy Transition Funding Project

Illustration. (Photo: Doc. Antara)

JAKARTA - Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said that the next six months will be a crucial period for Indonesia in its energy transition funding project through the JETP (Just Energy Transition Partnership) scheme.

Within the next six months, Indonesia will lead the preparation of cooperation and action plans to produce comprehensive investment plans, and include a real common target in the JETP scheme.

In a press conference entitled "Observing the G20 Summit Agenda and Funding for Energy Transitions" in Jakarta, Thursday, November 17, Bhima asked that in the preparation of the secretariat later, there would be participation from workers, vulnerable community groups, especially those affected by the energy transition, in order to comply with the principles that are fair in the JETP scheme.

"In these six months, the government should, in this case, open the space as transparently as possible, as participatively as possible, to those affected by the energy transition," said Bhima, quoted from Antara, Friday, November 18.

Furthermore, he also asked the composition of the board, directors or commissioners of PT Sarana Multi Infrastruktur (PT SMI) to accommodate community representatives affected by the energy transition in the preparation of this funding action plan.

The government has appointed PT SMI (Persero) to manage energy transition funding for the JETP scheme worth US$20 billion or around Rp310 trillion (exchange rate of Rp15,500 per US dollar), which is mostly from developed countries or G7.

"Out of concern that during the process of preparing such a large amount of money-funded program, it was carried out less transparently or participatively," said Bhima.

In addition to funding the JTEP scheme, at the G20 Summit in Bali on November 15-16, Indonesia received a commitment to funding the energy transition through the ETM scheme from the Asian Development Bank (ADB) of US$250-300 million (equivalent to Rp3.87 trillion).