Indonesia plans to unveil its $20 billion energy transition investment plan on November 1, according to an official, just days before the United Nations COP28 climate summit as Jakarta works to address issues related to funding and the energy mix for the initiative.
Officials had initially planned to begin the Just Energy Transition Partnership (JETP) project in the middle of August, but this was delayed due to issues ranging from differences on funding details to the extent of Indonesia's reliance on coal for electricity.
The new goal is to release JETP plans for public feedback next month, with an official launch scheduled for around November 20, said Paul Butarbutar, the deputy secretary of Indonesia's JETP office.
When asked whether the International Partners Group (IPG), composed of countries such as the United States, Japan, as well as development banks and private lenders, is expected to agree on the investment plan by then, Butarbutar said: "We will first agree on the content, but funding, etcetera, are a different matter, a matter for later."
The country has agreed to cap and peak the power sector's carbon emissions at 290 million metric tons by 2030 under the JETP, following the IPG's pledge to provide financial support through a blend of equity investments, grants, and concessional loans.
Indonesian officials have complained that western nations are reluctant to finance early retirement of coal-fired power plants, which is needed to make way for renewable power plants.
Currently, more than half of the electricity capacity in Indonesia, the world’s largest exporter of thermal coal, is fueled by coal.
Indonesia’s Finance Minister Sri Mulyani Indrawati has also asked for more grants to be included in the fund to reduce interest rates.
While $20 billion is pledged via JETP, the International Renewable Energy Agency estimates that the country would need $163.5 billion for its renewable energy technology, grid expansion and storage needs through 2030.