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Updated on Thursday, August 16, 2023, 9:00 PM WIB

A comprehensive plan to accelerate Indonesia’s transition to clean energy through a $20 billion (306 trillion rupiah) international partnership was presented to the government in Jakarta on Wednesday, but the rollout has been delayed until at the end of 2023, said the partnership secretariat.

Equitable Energy Transition Partnership or Partnership for a just energy transition (JETP), which was announced last year at the G20 summit in Bali and claimed to be the world’s largest climate fund, has submitted a policy plan Overall investment and policy plan (CIPP) to the government today, but the launch was postponed on the grounds that the Secretariat would still be adding new data.

“We welcome the submission of the CIPP document to the Indonesian government. We understand that this is a global effort to help Indonesia overcome complex challenges,” said Rachmat Kaimuddin, Deputy Infrastructure Coordination and Transport, Coordinating Ministry of Maritime Affairs and Investment, through an official. statement Wednesday (16/8).

Rachmat said his ministry will review and ensure that the content of the CIPP document is aligned with Indonesia’s energy transition priorities and in line with what was agreed in the joint statement.

Rachmat and his party appreciate the hard work that has been done by many parties to support the effort to prepare the CIPP document.

Separately, the Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said the new deadline also provides an opportunity for proper public consultation before finalizing the CIPP document.

“The people of Indonesia will have the opportunity to review the CIPP document in its entirety and provide comments and responses to be considered in the final revision of the CIPP document,” Dadan said in an official statement Wednesday.

He said that once this public process is completed, the CIPP document could be launched jointly by the Indonesian government and the developed countries members of the International Partners Group (IPG) towards the end of 2023.

The member countries of the IPG are the United States, Japan, Canada, Denmark, the European Union, Germany, Norway, Italy, as well as the United Kingdom and Ireland. The partnership also includes the Glasgow Financial Alliance for Net Zero (GFANZ) task force.

The JETP Joint Statement was adopted on the sidelines of the G20 Summit and was formed as an effort to uphold global justice where developed countries participate in supporting the acceleration of energy transition in developing countries through the collaboration between government, business actors, civil society, experts and financial institutions, according to the Partnership statement.

The CIPP document was also agreed in a joint statement as a technical document that will guide the implementation of this partnership.

JETP Secretariat Head Edo Mahendra said the draft CIPP was the result of an inclusive process involving many stakeholders.

They have been involved in the process of discussion, discussion, modeling and analysis, writing and intensive editing for more than a hundred days.

“These individuals and organizations also include those who lead or participate in working groups and also include those who participated in the various consultations that took place as part of the process of preparing this CIPP,” Edo said.

Don’t expect too much

Gadjah Mada University (UGM) energy observer Fahmy Radhi said Indonesia should not have high hopes for JETP funds as it is an old commitment that never materialized.

This energy transition fund, according to him, is the result of one of the commitments of the Paris Agreement which obliges developed countries to help developing countries with funds, technologies and capacities towards a goal of zero carbon emissions. .

Indonesia itself has repeatedly requested these funds, including at the G20 forum in Bali. The form of the JETP funds, according to Radhi, is not yet clear, whether it is a grant, a loan or a light loan.

“These funds are even more hazy, far from the fire. So the government must seek alternative financing, for example from investors to develop new renewable energies,” he said. TrueNews.

According to Radhi, these funds should be used to develop new renewable energies.

“The priority of this fund should be to replace coal-fired power plants that retire prematurely, there needs to be a replacement. It’s about changing the environmental damage to make it better by migrating to use new energy renewable,” he said.

Need for transparency

Economist and Director of the Center for Economic and Legal Studies (Celios) Bhima Yudhistira stressed the need for transparency and fairness in this JETP funding program.

“One of the most important things is transparency. Without intense transparency of the financing regime, a just energy transition would not be possible,” he said. TrueNews.

According to him, Indonesia is used to development patterns from top to bottom without meaningful public participation, people always end up becoming victims, losing their income and even losing their homes.

“With today’s communication technologies, ideally there is public involvement, from the simplest use of the website to providing access to the writing of the CIPP JETP. The only reason not to open access is that the government simply does not political will“, said Bhima.

According to him, without transparency, investment projects are likely to threaten local communities and vulnerable communities. A truly just transition must take into account aspects related to employment, gender, disability and social inclusion (GEDSI) and impact on inheritance of all energy projects.

Meanwhile, environmental non-governmental organization 350 Indonesia has called for JETP funds to be given priority to communities rather than energy business conglomerates.

“We have not heard any information from the government that part of the JETP funding will be given to the community to support the development of electricity based on renewable energy,” 350 Indonesia activist Suriadi Darmoko said in a discussion. online “Where Should JETP Money Go?” Tuesday.

According to him, the flow of funds to the community is important to increase adaptation to the climate crisis. Additionally, JETP funds can also build energy independence to meet community electricity needs.

“It can trigger local economic development,” said Suriadi, who added that as many as 4,400 villages in Indonesia still lack electricity.

Nazarudin Latif contributed to this report.