Indonesian president Joko Widodo November 15 launched the Just Energy Transition Partnership (JETP) at the Partnership for Global Infrastructure and Investment (PGII) event, in which Indonesia will get US$20 billion in soft loans from G7 to move away from coal to renewable energy.
Widodo said: “Indonesia is committed to using energy transition to achieve a green economy and to promote sustainable development. We are grateful for the cooperation and support from our international partners, to realize full implementation that will accelerate this transition. This partnership will generate valuable lessons for the global community. This can be replicated in other countries to help achieve common climate goals, through real collaborative action.”
With the soft loans, Indonesia will work to develop a comprehensive investment plan to achieve climate targets and develop policies that are significant in reducing greenhouse gas emissions.
John Morton, climate counselor, U.S. Department of Treasury, said this amount is possibly the single largest climate finance transaction or partnership ever. There is overall support from private finance representatives and members of the Glasgow Financial Alliance for Net Zero (GFANZ).
U.S. president Joe Biden said: “Indonesia has shown extraordinary leadership and ambition during the development of this partnership. The new accelerated targets demonstrate how the country can reduce emissions and increase renewable energy, and furthering a commitment to create quality jobs and protect people’s livelihoods.”
To access the US$20 billion loan, Indonesia must demonstrate a commitment to limiting the electricity sector’s emissions by 290 million tons by 2030. In the long term, Indonesia must ensure Net-Zero Emissions (NZE) in the energy and electricity business sector by 2050.
Photo credit: Angiola Harry. G20 leaders at the mangrove area of Tahura (Peoples’ Forest Park).