Today, the President of Indonesia, Joko Widodo, the President of the European Commission, Ursula von der Leyen , on behalf of the EU, and the leaders of the International Partners Group (IPG), which is jointly led by the United States and Japan and includes Canada, Denmark, France, Germany, Italy, Norway and the United Kingdom, launched a Just Energy Transition Partnership (JETP) with Indonesia . The launch takes place in connection with an event within the framework of the Partnership for Global Infrastructure and Investment (PGII) at the G20 summit, which takes place on 15-16 November 2022 in Bali.
In a joint statement , Indonesia and international partners have announced their commitment to meeting ground-breaking climate targets and related financing. This is done to support the Asian country in an ambitious and fair energy transition, which is in line with the goals of the Paris Agreement and which contributes to keeping the global warming limit of 1.5 °C within reach.
There are i.a. talk of accelerating the reduction of emissions from the energy sector towards zero emissions by 2050, and a strategy based on the expansion of renewable energy, the phasing out of coal-fired power generation on and off the grid, and further commitments to regulatory reform and energy efficiency.
The President of the European Commission, Ursula von der Leyen , states: “The Just Energy Transition Partnership (JETP) with Indonesia will chart a course towards a greener and cleaner future for the country and a future full of opportunities for the Indonesian people. They are the will reap the benefits of the transformation of their economy as Indonesia becomes a hub for renewable energy.”
The EU, together with international partners, will support Indonesia in its efforts to develop an investment plan that will lead the country on the right course towards achieving significant new climate targets, and policies that will reduce greenhouse gas emissions and support the affected communities during the process. The implementation of concrete measures to achieve a fair energy transition for workers and communities, especially those most affected by an energy transition away from coal, is one of the most important aspects of the partnership.
Over the next six months, Indonesia will work hand in hand with the EU and partners to draw up a concrete plan for investment, financing and technical assistance.
Overall, the goal of this long-term partnership with Indonesia is to initially mobilize an amount of DKK 20 billion. EUR (approx. EUR 19.4 billion) in public and private funds over a period of three to five years, to be made up of a mix of grants, concessional loans, market-rate loans, guarantees and private investments. This will pave the way towards achieving future ambitious climate and energy targets.
Half of this amount, or 10 billion USD, will be mobilized by IPG’s members. The EU and the member states that are part of the IPG intend to mobilize around DKK 2.5 billion. USD. Of this amount , the EU will support the partnership via the European Investment Bank (EIB) with DKK 1 billion. EUR , which will go to eligible projects that contribute to the decarbonisation of Indonesia’s electricity system via the development and integration of renewable energy. The EU will also earmark 25 million EUR in grants and technical assistance.
The Joint Partnership on Just Energy Transition with Indonesia announced today is the second of its kind following the launch of the Joint Partnership with South Africa at COP26 in Glasgow. These partnerships are a strong example of action through global cooperation between emerging economies and international partners to jointly address the climate crisis.
The Just Energy Transition Partnership (JETP) with Indonesia will chart a course towards a greener and cleaner future for the country and a future full of opportunity for the Indonesian people. They are the ones who will reap the benefits of the transformation of their economy as Indonesia becomes a hub for renewable energy.Commission President Ursula von der Leyen – 15/11/2022