JETP, a financing commitment from rich nations and global lenders to help poorer nations adopt cleaner energy, has earmarked $20 billion to help Indonesia cut its emissions.
Airlangga says others won't follow US exit from JETP Coordinating Economic Minister Airlangga Hartarto speaks to reporters before entering his car at his Jakarta office on Dec. 3, 2024. (JP/Deni Ghifari)T
he United States' decision to pull out of the Just Energy Transition Partnership, an energy transition funding commitment by developed countries, will not impact the other partners' commitment to it, a senior minister said on Monday.
JETP, a financing commitment from rich nations and global lenders to help poorer nations adopt cleaner energy, has earmarked $20 billion to help Indonesia cut its emissions.
Earlier this month the US said it had withdrawn from its JETP deals with Indonesia, South Africa and Vietnam. The US commitment in Indonesia was over $2 billion, made up of non-concessional loans, MDB guarantees, and grants.
Coordinating Economic Affairs Minister Airlangga Hartarto told reporters the JETP financing commitments are now co-led by Japan and Germany.
"The US exit will not reduce the commitment of nine countries to support Indonesia's net-zero emissions push," he said, reiterating the net-zero target date was 2060 or earlier.
Under the JETP framework, Indonesia is aiming to cut annual carbon emissions by more than 50 million tons to 250 million tons of carbon dioxide equivalent from its on-grid power sector by 2030. It also plans to increase the share of renewable energy in its power mix to 44 percent by 2030, from around 12 percent in 2022.
Airlangga said JETP has made funding commitments worth $1.1 billion across 54 projects, including the expansion of the Muara Laboh geothermal plant, and he said the country will find other modes of funding.
Introduced during the UN climate talks in Scotland in 2021, the initiative's backers counted France, Germany, Britain, Canada and the European Union.
Indonesia's JETP Secretariat head Paul Butarbutar confirmed the US embassy in Jakarta informed him in early March of Washington's decision to withdraw.
"Correct... it is part of the executive order," he responded when asked if the Trump administration had ordered the withdrawal.
Paul said the pledge of $21.6 billion from private and public donors remained unchanged, but expected the US withdrawal to impact transition studies and the issuance of grants.
Indonesia, the world's top thermal coal exporter, currently sources 60 percent of its energy from coal, the most carbon-intensive fossil fuel.