In November, Indonesia unveiled a $20 billion investment plan with support from major lenders like the United States and Japan. The goal is to expedite the reduction of greenhouse gases in the country’s power sector, emphasizing the need for swift fund allocation.

Through the Just Energy Transition Partnership (JETP), Indonesia aims to cut carbon dioxide emissions to 250 million metric tons by 2030, a notable decrease from the usual 350 million expected. The Comprehensive Investment and Policy Plan (CIPP) release, following a recent public review, solidifies this goal. As one of the largest global contributors to greenhouse gases, Indonesia is committed to raising renewable energy in power production to 44% by 2030, a significant increase from 12% in 2022. Erick Thohir, the temporary chief minister for investment affairs, stressed the urgent need for stronger partnerships to prioritize key projects and promptly fulfill financial commitments. The CIPP outlines a $97.3 billion investment, allocating $66.9 billion for 400 projects by 2030. While expecting JETP funding to accelerate the energy transition and attract aid, concerns linger among some environmentalists regarding reliance on commercial loans. The debate focuses on loan rates and their consequences. Indonesia’s JETP stands as the largest initiative in its category, next to Vietnam’s $15 billion program.