Minister of Energy and Mineral Resources Arifin Tasrif inaugurated the Just Energy Transition Partnership (JETP) secretariat agreed by the country's leaders at the G20 Summit in Bali in 2022.
Arifin said the output for the next six months that the secretariat will achieve is to complete the early retirement roadmap for coal-fired power plants, mobilize investments and support the financing mechanism set out in the Comprehensive Investment Plan (CIP).
"The JETP Secretariat has been formed and officially based at the Ministry of Energy and Mineral Resources, this place will become a center of information, planning and coordination, as well as monitoring and evaluation of the implementation of the JETP project as instructed by the Task Force Team," he told the media, Friday, February 17.
With the formation of the JETP Secretariat, Arifin continued, as a layer of coordination between the task force team and technical implementation, it is hoped that it will have a beneficial impact to support the achievement of JETP targets.
"The first task of the task force team is to regulate the working group to accelerate the JETP energy transition program, namely the generating system, financing, decarbonization of the generating sector, supply and manufacturing chains, and the transition to equal social energy," said Arifin.
Furthermore, Director General of New, Renewable Energy and Energy Conservation (EBTKE) Dadan Kusdiana said that the JETP Secretariat will operate from Friday 17 February and will start working on its tasks and programs, including the development of clean energy, the acceleration of early retirement of coal power plants, and the program to increase energy efficiency, as well as the development of the EBT supporting industry.
"Several activities that will later become JETP's main activities, namely the first is of course the development of clean energy, specifically for renewable energy. The second is the acceleration of coal PLTU pension, and the third is programs to help increase energy efficiency. This is in the joint statement, including the development of the EBT supporting industry in Indonesia, so not only building from the power plant side, but also building from the industrial side here," said Dadan.
On that occasion, Head of the US Department of Treasury, Alexia Latourte, also said that the JETP Secretariat will support the Indonesian Government in achieving the JETP target, including a comprehensive investment and policy plan, which reflects the target of reducing greenhouse gas emissions and most importantly to support the affected communities.
"That's the reason we say 'Just Energy Transition', which is a just energy transition that takes into account people's lives and livelihoods affected at every level of energy transition travel, so that no one is left behind," said Alexia.
The JETP governance structure consists of three levels, namely the Indonesian policy layer decarbonization task force and the IPG task force, JETP secretariat, and project implementation. PT SMI, as a country platform, coordinates the project level for connect layer. The types of projects under JETP include early retirement of PLTU, development of renewable energy PLT, grid/transmission, supply chain of renewable energy, energy efficiency, and just transition.
PT. Sarana Multi Infrastruktur (PT. SMI) as the funding manager will partner with Glasgow Financial Alliance for Net Zero (GFANZ) consisting of Bank of America, Citibank, Deutsche Bank, HSBC, Macquaire, MUFG and Standard Chartered as well as other multilateral development banks. The appointment of PT. SMI as the country platform manager has been determined through the Decree of the Minister of Finance Number 275 of 2022.
Coordination between stakeholders continues to be carried out to propose pilot project early retirement transactions under the JETP umbrella to prove the sustainability of market mechanisms. This coordination involves the Coordinating Ministry for Maritime Affairs and Investment, PT PLN (Persero), Ministry of Energy and Mineral Resources, Ministry of Finance - CIF-ACT, and others.
As is known, President Joko Widodo together with the President of the United States (US) Joe Biden and the leaders of the International Partners Group (IPG) launched an international agreement, namely the Just Energy Transition Partnership (JETP) energy transition funding scheme, at the G20 Summit event series in Bali last November 2022.
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