Indonesia launches $20 billion renewable energy investment plan

 Indonesia launched  its investment plan to mobilise $20 billion in financing pledged by global lenders led by the United States and Japan to accelerate its power sector decarbonisation and called for immediate fund disbursement.

The $20 billion funding package will be disbursed through various mechanisms, including via grants, concessional and non-concessional loans, and investments, and guarantees.  The IPG’s funding will direct support toward the priorities and projects identified in the CIPP, including renewable energy deployment; transmission and grid build out; managed phaseout and reduction in emissions from coal plants; and just transition initiatives.

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.

As next steps, the Indonesian government and the IPG, supported by the JETP Secretariat, will continue to work together to implement the CIPP.  The IPG and GFANZ investors are actively working to direct financing towards potential JETP projects, and Indonesia’s implementation of the CIPP’s policy recommendations will enable the business environment for renewable investments.  These combined efforts are designed to help catalyze additional investments in Indonesia’s energy transition and spark a boom in Indonesia’s renewable energy sector.

The Just Energy Transition Partnership will promote Indonesia’s clean energy and economic development, which will also contribute to more sustainable, more prosperous and inclusive global economies and societies. Japan will continue to co-lead this JETP with the U.S., in coordination with the other partner countries, to support Indonesia’s realistic but ambitious decarbonization transition, while respecting Indonesia’s country ownership. Japan will continue to contribute to global decarbonization efforts through various initiatives including JETP.”

A view shows solar panels of the 192 megawatt peak (MWp) floating solar power plant built on Cirata dam, that was developed by PLN Nusantara Power, a unit of Indonesia's state utility company Perusahaan Listrik Negara (PLN) and United Arab Emirates renewable energy company Masdar, a unit of Mubadala Investment Company.