Jayanty Nada Shofa, Jakarta – Indonesia says it has made the necessary preparations for the $20 billion climate financing Just Energy Transition Partnership (JETP), but the country is now wondering when the money will start to pour in.

The International Partners Group (IPG) at Bali's G20 Summit last year launched the JETP to help Indonesia end its reliance on coal.

Co-led by the US and Japan, the IPG includes Canada, Denmark, the European Union (EU), France, Germany, Italy, Norway, and the UK. The IPG pledged to mobilize $10 billion of public money, while the other half comes from financial institutions that are part of the Glasgow Financial Alliance for Net Zero (Gfanz).

The JETP funding, which is set to come in over a three-to-five-year period, encompasses grants, concessional loans, market-rate loans, guarantees, and private investment.

"Today we are chasing after the US' group [IPG] and Gfanz, asking them 'where the money is'," Chief Investment Minister Luhut Binsar Pandjaitan said when commenting on the JETP program at the 2023 Indonesia Net Zero Summit in Jakarta on Saturday.

On the sidelines of the summit, Luhut told reporters that he also wondered about the delay even though Indonesia had made the necessary preparations.

"If you ask what the problem is, you should ask them [IPG, Gfanz]. We have prepared everything, including picking the coal-fired power plants for early retirement," Luhut said.

The government earlier reported that it was drafting a comprehensive investment and policy plan that would lay out the funding as well as the technical details, among others. This document is set for launch on August 16.

The ministry data also shows wealthy nations such as the US are major emitters. As of 2019, carbon emission per capita in the US reaches 14.7 tons per person, much higher than the global average of 4.5 tons. The average person in Indonesia emits about 2.3 tons of emissions, among the lowest when compared to other G20 economies.

"I told [US Special Presidential Envoy for Climate] John Kerry that we would do anything you ask us. But please do not disturb our economic growth. Your [US'] emission per capita is much higher than ours. Let our economy grow, but we will make efforts to lower emissions," Luhut said.

Source: https://jakartaglobe.id/news/indonesia-wants-to-know-where-the-jetp-money-i