Government Officially Launches JETP CIPP Documents, This Is What ESDM Minister Arifin Tasrif Said

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif. (Photo: Doc. Antara)

JAKARTA - The government has officially launched a policy plan and investment commitment (CIPP) which is a Just Energy Transition Partnership (JETP) climate funding program at the Ministry of Energy and Mineral Resources Building, Tuesday, November 21.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif in his speech said JETP was one of Indonesia's efforts to accelerate the energy transition in accordance with the commitments set out in the Nationally Determined Contribution target which in Indonesia's aspirations we can achieve Net Zero Emission in 2060.

Arifin added that the completion of the decarbonization scenario formulation, list of priority projects and financing mechanisms as outlined in the CIPP document was assessed by the government as JETP's commitment to assisting the Indonesian government as the basis for planning and policy making in the green energy-based electricity sector.

In line with that, the Ministry of Energy and Mineral Resources has prepared a net zero emission roadmap for the energy sector which is expected to be the basis for the energy transition until 2060. JETP targets are considered more ambitious and higher than the targets set out in the National Electricity General Plan (RUKN) and the energy sector's Net Zero Emission (NZE) Roadmap.

"These JETP targets are conditional targets that can only be achieved through technical cooperation and funding of the parties," said Arifin in his remarks, Tuesday, November 21.

The existence of JETP cooperation is expected to catalyze much greater investment and support in the future. In particular, it can prioritize support and investment for the foundation of the energy transition itself, namely the development and strengthening of transmission networks.

"Because without transmission, there is no transition. In addition, technical cooperation and funding are needed to accelerate efforts to implement priority projects that have been identified in CIPP documents in all investment areas," he added.

The line of partners is also needed to ensure that the energy transition can pay the best attention to all aspects of economic and environmental socio, so that the energy transition can take place fairly.

"Support from friendly countries that are members of the International Partners Group (IPG), financial institutions, business actors including state-owned companies and private parties and of course the relevant ministries and institutions and other stakeholders are the keys in achieving energy transition goals in Indonesia," added Arifin.

For Arifin, the inauguration of the CIPP document started the implementation round of cooperation with JETP.

"Now is the time to realize the commitments that have been mutually agreed upon and realize an ambitious and just energy transition for Indonesia," said Arifin.

The JETP agreement between Indonesia and developed countries that are members of the International Partners Group (IPG), is led by the United States and Japan and consists of Denmark, England, Italy, Germany, Canada, Norway, France, and the European Union.

"Thank you to all parties, especially friendly countries for their initiation to build a global partnership for the transition of energy to justice," Arfin appreciated.

The funding commitment agreed in a joint statement was initially worth USD 20 billion, but now with various additions it 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 the 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 being prepared by the Indonesian government.

CIPP 2023 will focus on the on-grid electricity system. Meanwhile, an more in-depth off-grid electricity system will be carried out to establish a decarbonization strategy that is in line with Indonesia's industrialization and downstream ideals. The CIPP document is a "moving document" that will continue to be updated every year to always reflect the global economic conditions and priorities of domestic policies.