Bisnis.comJAKARTA — Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan revealed that funding for the early retirement of the Just Energy Transition Partnership (JETP) coal-fired steam power plants (PLTUs) is still unclear at this time.
In fact, said Luhut, the government had prepared a number Power plant which are ready to be withdrawn more quickly in the JETP program.
“There is a PLTU we want to work on right away, but we are waiting for money from the consortium, so far the money is unclear,” Luhut said when meeting in Jakarta on Friday. (18/8/2023).
Luhut revealed that negotiations on a climate pact led by the United States and Japan and other partners continue to this day. He said the pledge to raise the transition fund amounting to US$20 billion, equivalent to Rs 310.7 trillion (assuming an exchange rate of Rs 15,535 per US dollar) of the climate pact, was not yet clear.
“In fact, it was reported that it was us who pulled out, although it was unclear from them,” he said.
In the meantime, the launch of a comprehensive investment plan or Comprehensive Investment and Policy Plan (CIPP), following on from the JETP, will only be launched towards the end of this year. The JETP Secretariat submitted the draft investment plan to the Indonesian government and international partners group on Wednesday (8/16/2023).
Not so long ago, Luhut also met with the United States Treasury Secretary, Janet Yellen, to discuss the continuation of JETP’s energy transition funding commitment for the implementation of the law. on Inflation Reduction (IRA).
The discussion of the two topics took place during Luhut’s working visit to Washington DC, from Friday (08/04/2023) to Monday (08/07/2023).
As known, the climate pact embedded in the JETP partnership had pledged to provide US$20 billion in pooled funds from the public and private sectors over the next 3-5 years for the Indonesian government.
JETP’s funding program consists of $10 billion from public funding commitments and $10 billion from private funding coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ), which includes Bank of America, Citi , Deutsche Bank, HSBC, Macquarie, MUFG , and Standard Chartered.
Meanwhile, the US-Japan-led JETP partnership includes the other G7 member nations of Canada, Britain, France, Germany and Italy, as well as Norway and Denmark.
It is expected that the pool of funds will be used to finance the PLTU’s early retirement program and the construction of new power plants based on renewable energy in the future.
Previously, PT Perusahaan Listrik Negara (Persero) or PLN stipulated strict requirements for Coal Power Plant Early Retirement Program in the JETP of the Comprehensive Investment and Policy Plan (CIPP).
PLN Senior Director Darmawan Prasodjo said his company had applied to JETP to secure a grant or to agree for each PLTU that is retired early. Darmawan said the early retirement program is not only beneficial for Indonesia, but also for the world.
Thus, Darmawan said, the decision to expedite the end of operations of the national fossil-fuel power plant must be assessed proportionately through JETP compensation.
“We say what it is mango only if you want early coal retirementbut please count these assets and please replace them with species to JETP,” Darmawan said during a hearing meeting (RDP) of the Energy Transition Committee with Commission VI, Wednesday 07/12/2023.
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