Indonesia secures additional $400 million for JETP projects

Indonesia has secured an additional US$400 million in funding for its Just Energy Transition Partnership (JETP) projects, bringing total commitments to US$21.8 billion from US$21.4 billion, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

Speaking to reporters in Jakarta on Thursday, Airlangga said Germany’s development bank KfW has recently signed investment commitments for two energy transition projects.

“Germany, through KfW financing, has committed to two projects, including the Saguling floating solar power plant,” Airlangga said.

He added that more than 20 projects are currently in the pipeline for potential JETP funding.

“We have many projects on the list, more than 20 in the pipeline,” he said.

To date, Indonesia has secured US$21.4 billion in JETP funding, of which around US$3.1 billion has already been utilized.

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A number of priority projects are listed under the JETP, both ready for financing and awaiting approval. Upcoming projects include the Saguling floating solar plant, the Muara Laboh geothermal plant, a waste-to-energy facility in Legok Nangka, transmission network development in Sulawesi, a wind power project in South Sumatra, and a national de-dieselization program.

Of the total JETP commitments, US$11 billion comes from the International Partners Group (IPG) and US$10 billion from the Glasgow Financial Alliance for Net Zero (GFANZ).

To accelerate clean energy development, the government has established the Energy Transition and Green Economy Task Force (Satgas TEH) to speed up JETP implementation, including preparations for a JETP 2.0 framework.

The task force aims to optimize funding utilization to support Indonesia’s Nationally Determined Contribution (NDC) targets and expand the country’s clean energy capacity.

Editing by Reiner Simanjuntak