Indonesia Unveils Investment Policy and Commitment Roadmap for the Just Energy Transition Partnership (JETP) Program
On November 21, Indonesia launched its investment plan to mobilize US$20 billion in financing to accelerate its power sector decarbonization. The "Comprehensive Investment and Policy Plan (CIPP)” is a roadmap for the government of Indonesia and the International Partners Group (IPG) to achieve the objectives laid out in the Just Energy Transition Partnership (JETP) Joint Statement, announced at the G20 Leaders’ Summit in 2022. It maps out a technical pathway for Indonesia’s power sector, recommending policy changes needed to successfully transition the power sector and charting a path for Indonesia’s on-grid system to achieve 44% renewable energy generation share by 2030.
Indonesia's Minister of Energy and Mineral Resources Arifin Tasrif later clarified two priority projects that will be carried out under the program. These include the early retirement of West Java's Cirebon-1 Steam Power Plant and the construction of the Java-Sumatra electricity transmission network. The projects are the first of many under the CIPP as the plan identifies over 400 near-term investments, totaling an estimated US$67 billion which encompass transmission and distribution, hydroelectricity, geothermal, solar, and wind projects.