Bisnis.comJAKARTA – The Ministry of Energy and Mineral Resources (ESDM) has disclosed that the geothermal sector has not received funding from the Just Energy Transition Partnership (JETP) programme.
Director of geothermal energy at the Ministry of Energy and Mineral Resources, Harris Yahya, said the development of the geothermal sector would not be affected even though he did not receive an allocation from the funding commitment of the climate pact led by the United States (US) and Japan. .
“Oh no [menghambat pengembangan]it’s up to JETP to step up because the funding is not just coming from JETP,” Harris told the Department of Energy and Mineral Resources on Thursday (7/13/2023).
Harris said that apart from JETP, there are still many sources of funding for the development of geothermal potential in Indonesia.
“This [JETP] only one of which we hope to accelerate, but other sources of funding there are still,” he said.
Meanwhile, the JETP is a partnership between the Indonesian government and the US-Japan led International Partners Group (IPG). The agreement will mobilize $20 billion in public and private investment financing in the form of grants and low-interest loans, over the next 3-5 years, to help Indonesia make the energy transition.
Of the US$20 billion commitment, US$10 billion will be mobilized by IPG members, including Canada, Denmark, European Union, France, Germany, Italy, Norway and the UK.
Next, the US$10 billion funding commitment will also be leveraged and facilitated by the Glasgow Financial Alliance for Net Zero (GFANZ), which consists of Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG and Standard. Chartered.
As previously reported, the Ministry of Finance continues to collect pledges from developed G7 member countries regarding JETP’s commitment to Indonesia’s energy transition.
“This is what we have to charge, in fact JETP is a pledged commitment. Indonesia is cooperating with the energy transition mechanism [ETM] we charge for them, this is the project that we prepared based on what we talked about. Prove your commitment,” the head of the Fiscal Policy Agency (BKF) in the Ministry of Finance, Febrio Nathan Kacaribu, told ICE BSD quoted, Thursday (7/13/2023).
Febrio revealed that funding JETP is actually still a burden on the state budget. He pointed out that this was not in line with the initial commitment so that the government considered that the financing of the energy transition was inequitable.
Indonesia, Febrio said, is currently working with ETM to accelerate the energy transition to new renewable energy (EBT).
“Indonesia works with ETM, so we don’t worry too much about what they promise. We offer the project to prove our commitment, so we will work on the project,” he said.
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