Indonesia, the Largest Recipient of JETP Energy Transition Funds

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Adi Ahdiat 08/08/2023 19:20 WIB

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Indonesia received a US$20 billion JETP financing commitment in 2022. This figure is significantly larger than the funding received by other JETP target countries.

Countries Receiving JETP Energy Transition Financing Commitments (2021-2022)

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Indonesia, the Largest Recipient of JETP Energy Transition Funds

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Countries Receiving JETP Energy Transition Financing Commitments (2021-2022)

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The Just Energy Transition Partnership (JETP) is a financing cooperation mechanism to promote energy transition in developing countries.

JETP financing is provided by developed countries and international organizations to enable developing countries to accelerate the shift from fossil fuels to renewable energy.

The JETP initiative was first launched in 2021 at the 26th Conference of the Parties (COP) or United Nations Climate Change Conference in Glasgow, Scotland.

At that time, the governments of the United Kingdom, the United States, France, Germany, and the European Union committed to providing energy transition financing for South Africa totaling US$8.5 billion.

Then in 2022, JETP financing commitments were given to Indonesia totaling US$20 billion, or approximately Rp300 trillion (assuming an exchange rate of Rp15,000 per US$). In the same year, Vietnam received a similar commitment of US$15.5 billion.

Thus, in the last two years, Indonesia has become the largest recipient of JETP financing in the world.

However, this JETP financing is not entirely "free." Some financing is in the form of grants, while others are loans with specific interest rates and terms.

According to the Indonesian Alliance of Independent Journalists (AJI), as of mid-2023, there is still a lack of clarity regarding the status of JETP financing for Indonesia.

"As a new funding model, its mechanism (JETP) is still unclear," said AJI in its July 2023 report, *Position Paper on Information Transparency for a Just JETP*.

"This lack of clarity includes how much funding is in the form of grants, the proportion of debt, and what can be funded. If this process is not transparent and does not sufficiently involve those directly impacted, it is feared that it will become a source of new problems," said AJI.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia, the Largest Recipient of JETP Energy Transition Funds

Indonesia, the Largest Recipient of JETP Energy Transition Funds

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