Indonesia unveils $20 billion renewables vision

Indonesia has rolled out an investment plan to mobilise $20 billion in renewables financing.

Under Indonesia’s Just Energy Transition Partnership (JETP) the country seeks to cut carbon dioxide emissions to 250 million metric tons for its on-grid power sector by 2030, versus estimated business-as-usual emissions of over 350 million.

Indonesia, one of the world’s largest greenhouse gas emitters, plans to increase the portion of renewable energy in its power generation to 44% by 2030 from around 12% in 2022.

“We have to move quickly because 2030 is less than seven years away. The partnership must be enhanced and accelerated to do the priority projects, including to immediately realise the financing commitments,” Erick Thohir, chief minister for investment affairs, said.

The investment proposal is known as Comprehensive Investment and Policy Plan (CIPP).

The CIPP indicated investments worth $97.3 billion were needed to achieve the targets, including $66.9 billion for 400 projects which need to start by 2030 at the latest.

Michael Kleine, the US charge d’affaires in Jakarta, said the JETP funding was expected to “jump start” energy transition investment and attract more financing.