ASIATODAY.ID, JAKARTA – The International Partners Group (IPG), co-chaired by the United States and Japan and its members consisting of Canada, Denmark, the European Union, Germany, France, Norway, Italy, and the United Kingdom and Northern Ireland, welcomes the launch Comprehensive Investment and Policy Plan (CIPP) of Indonesia’s Just Energy Transition Partnership (JETP).
Launched in Jakarta Wednesday, 22 November 2023, CIPP is a roadmap for the Indonesian government and IPG to achieve the goals set out in the JETP Joint Statement, announced at last year’s G20 Leaders Summit in Bali.
In this Joint Statement, Indonesia is committed to limiting emissions, accelerating the development of renewable energy, and setting a goal to achieve a zero emissions target in the electricity sector by 2050.
To support this ambitious target, IPG is committed to mobilizing $10 billion in funding and the Glasgow Financial Alliance for Net Zero (GFANZ), a global coordination of leading financial institutions committed to accelerating the zero emissions transition, is committed to mobilizing and facilitating financing an additional $10 billion.
CIPP, which is the culmination of a year’s work, maps the technical path of the electricity sector in Indonesia, recommends policy changes needed for a successful electricity sector transition, and outlines a plan for a just transition. The plan also serves as the basis for pushing $20 billion in JETP funding for specific projects as well as Indonesia’s energy transition priorities.
The CIPP technical design initially focused on the on-grid power generation sector. Under CIPP’s technical plan for solar power generation systems, these systems will produce no more than 250 MT CO2 of carbon dioxide, down from a baseline figure of 305 MT, and will account for 44 percent of renewable energy generation by 2030. The partnership will work together to Complete analysis of the off-grid electricity sector in Indonesia in the coming months. This analysis will be the basis for implementing the steps necessary to achieve a comprehensive energy transition.
The $20 billion funding package will be disbursed through various mechanisms, including through grants, concessional and concessional loans, as well as investments and guarantees. IPG funding will direct support towards priorities and projects identified in the CIPP, including the deployment of renewable energy; transmission and network construction; phasing out and reducing emissions from coal-fired power plants; and just transition initiatives.
As a next step, the Indonesian government and IPG, supported by the JETP Secretariat, will continue to work together to implement CIPP. IPG and GFANZ investors are actively seeking to direct financing to potential JETP projects, and implementation of CIPP policy recommendations in Indonesia will enable a business environment for renewable energy investment.
This combined effort is designed to help catalyze additional investment in Indonesia’s energy transition and drive the growth of Indonesia’s renewable energy sector.
Japanese Ambassador to Indonesia Kanasugi Kenji said Japan welcomed the launch of the Comprehensive Investment and Policy Plan, which shows an ambitious path to clean emissions. The Just Energy Transition Partnership will encourage clean energy and Indonesia’s economic development, which will also contribute to a more sustainable, more prosperous and inclusive global economy and society.
“Japan will continue to lead this JETP with America, in coordination with other partner countries, to support a realistic but ambitious decarbonization transition in Indonesia, while respecting Indonesian state ownership. “Japan will continue to contribute to global decarbonization efforts through various initiatives including JETP,” he said, quoted from a press release from the United States Embassy in Jakarta, Thursday, November 23 2023.
Chargé d’Affaires of the United States Embassy to Indonesia Michael F. Kleine said, Indonesia’s roadmap for reducing carbon emissions – the JETP Indonesia Comprehensive Policy and Investment Plan – is an important milestone that shows Indonesia’s leadership in achieving clean emissions in the electricity sector by 2050 and encouraging growth an economy powered by renewable energy.
Chargé d’Affaires of the Canadian Embassy to Indonesia and Timor-Leste Richard Le Bars said “The launch of the Indonesian Just Energy Transition Partnership’s Comprehensive Policy and Investment Plan demonstrates continued multilateral collaboration in supporting Indonesia’s ambitious steps towards an environmentally friendly energy system and a sustainable future. Canada is committed to continuing this collaboration with Indonesia and other partners, recognizing our shared interests in ensuring an inclusive and clean energy future in Indonesia and the broader Indo-Pacific region.”
Danish Deputy Ambassador to Indonesia, Malaysia, Timor-Leste, Papua New Guinea and ASEAN Per Brixen said, “Today’s launch of the Comprehensive Investment and Policy Plan (CIPP) marks another major step in Indonesia’s green transition. CIPP shows important pathways and steps to achieve a transition to Indonesia’s on-grid electricity sector that is not only environmentally friendly but also fair. Denmark will continue to support Indonesia in building close technical collaboration for more than seven years in the development of renewable energy with the Indonesian Government.”
European Union Ambassador to Indonesia and Brunei Darussalam Denis Chaibi said, “The Indonesian Energy Transition Partnership (JETP) Comprehensive Investment and Policy Plan is the start of a transformative path that will enable Indonesia and the European Union to jointly contribute to the global fight against climate change. Through a combination of grants and soft loans, the EU, the European Investment Bank and EU Member States have pledged 3.7 billion dollars for the fossil fuel transition. In the future, we have a special opportunity to work together on CIPP implementation, including off-grid decarbonization pathways.”
French Ambassador to Indonesia, Timor Leste and ASEAN Fabien Penone said “The launch of the Comprehensive Investment and Policy Plan (CIPP) marks an important milestone in joint efforts to support and accelerate Indonesia’s energy transition in a way that is fair and leaves no one behind, and brings benefits to the Indonesian economy , Indonesian society, and climate. France will continue to maintain close relations with the Indonesian government and international partners to achieve results in line with JETP’s high ambitions.”
German Ambassador to Indonesia Ina Lepel said “Today’s launch of the Comprehensive Investment and Policy Plan (CIPP) is a major success towards an environmentally friendly energy transition in Indonesia. The Government of the Federal Republic of Germany highly appreciates the dedication and ambition of the Government of Indonesia and is committed to providing substantial funding to implement the Just Energy Transition Partnership (JETP). Together, we will shape a future where clean, affordable energy drives progress and preserves our planet for future generations.”
Italian Ambassador to Indonesia Benedetto Latteri said “CIPP will determine the direction of achieving JETP’s goals. We acknowledge the efforts made by the Indonesian Government. Italy is proud to stand by Indonesia’s side on this ambitious path and leverage Italy’s most advanced technology and skills to benefit Indonesia in sustaining its energy transition efforts.”
Norwegian Ambassador to Indonesia Rut Krüger Giverin said, “Norway is very pleased to be able to take part in this partnership and support Indonesia’s efforts to develop environmentally friendly energy and accelerate the energy transition. We believe the Comprehensive Investment and Policy Plan (CIPP) will provide a good framework for mobilizing capital to accelerate the adoption of renewable energy in Indonesia. Norway will continue to support Indonesia’s commitment to reducing emissions and fighting climate change.”
British Ambassador to Indonesia and Timor Leste Dominic Jermey said, “I congratulate the Indonesian Government on the successful launch of CIPP today. The plan outlines key steps for the on-grid electricity sector and sets the foundation for future strategies for the off-grid electricity sector. The UK remains a loyal partner in Indonesia’s ambitions for an energy transition. Partners across the domestic spectrum, international community and private sector will be indispensable to help Indonesia achieve its renewable energy and infrastructure investment targets.” (AT Network)
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