JETP Indonesia

The Just Energy Transition Partnership (JETP) with Indonesia was announced on 15 November 2022 at the G20 Leaders' Summit in Bali. It is a financing and policy compact between Indonesia and the International Partners Group (IPG), co-led by the United States and Japan and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom. The partnership initially mobilized a headline pledge of USD 20 billion over three to five years, split roughly evenly between public finance from IPG members and private finance coordinated through the Glasgow Financial Alliance for Net Zero (GFANZ).

The partnership's stated goals, set out in the launch joint statement, included:

• Capping Indonesia's on-grid power-sector CO₂ emissions at 290 million tonnes by 2030.
• Accelerating peak power-sector emissions to 2030, earlier than previously planned.
• Raising the share of renewables in on-grid power generation to at least 34% by 2030.
• Reaching net-zero emissions in the power sector by 2050.

Indonesia published its Comprehensive Investment and Policy Plan (CIPP) in November 2023, which operationalized these targets and identified priority investment areas including grid modernization, early coal retirement, and dispatchable renewables such as geothermal and hydropower. The CIPP was updated in 2024.

JETP Indonesia is the second such partnership, modeled on the South Africa JETP announced at COP26 in 2021, and was followed by similar arrangements with Vietnam (2022) and Senegal (2023). It is notable for the scale of pledged finance but has drawn criticism from civil society groups — including the Center for Energy Research Asia and CELIOS — over the loan-heavy composition of public finance, the exclusion of captive coal plants serving industrial estates from emissions caps, and slow disbursement. The partnership's future also became uncertain after the United States announced its withdrawal from JETP arrangements in early 2025.