Charting the Financial Path to JETP: Challenges, Risks, and Policy Insights

The Just Energy Transition Partnership’s Comprehensive Investment and Policy Plan (CIPP) for Indonesia’s ambitious energy transition is marked by significant financial opportunities and challenges. The plan, relying heavily on non-concessional loans, poses fiscal and debt sustainability concerns, emphasizing the need for diverse funding sources. Corruption risks, indicated by Transparency International’s report on Indonesia’s Corruption Perception Index, especially in the context of early coal-fired power plant retirements, necessitate robust anti-corruption measures and stringent oversight mechanisms.


The complexities introduced by privatization within the JETP scheme require prudent approaches to mitigate associated risks. Historical experiences, such as those with Independent Power Producer (IPP) projects, underscore the importance of transparency, accountability, and stakeholder engagement to prevent pitfalls. The document recommends innovative financial strategies, such as debt swaps or cancellations, to alleviate Indonesia’s financial burdens and prioritize systematic transparency across all JETP initiatives.


The success of JETP’s ambitious plans depends on adept financial strategies, diligent anti-corruption measures, cautious privatization approaches, and an unwavering commitment to systemic transparency. Balancing financial prudence with innovative solutions and fostering a culture of accountability and openness will be pivotal in steering Indonesia towards a just and sustainable energy transition.

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