The Comprehensive Investment and Policy Plan (CIPP) for Indonesia’s Just Energy Transition Partnership (JETP) was launched in November 2023. A year after this document was introduced, several measures have been implemented to ensure a just energy transition, focusing on social, financial, and environmental aspects.
JETP Indonesia has undertaken at least ten CIPP programs, including expanding investment focus areas, aligning program objectives with funding implementation, conducting studies on energy efficiency and electricity, assessing fossil-fuel-based captive power plants for transition to low-carbon energy sources, evaluating just energy transition approaches, studying the retirement of the Cirebon-1 coal-fired power plant (CFPP), updating JETP financing, revising policies and tracking policy reform progress, introducing monitoring and evaluation frameworks for JETP operations, and establishing a joint JETP and Indonesia Energy Transition (IET) team to resolve key challenges and accelerate procurement processes in the energy transition sector.
Paul Butarbutar, Head of the JETP Indonesia Secretariat, stated that JETP has strict criteria for implementing just-energy transition programs. He emphasized that JETP will not support programs that negatively impact social, community, or environmental aspects: “We have a 1-9 standard for implementing just energy transition programs. If a program is harmful or contradicts justice principles, JETP will not engage,” he said at a public discussion in Jakarta. Currently, a budget of USD 21.6 billion (approximately IDR 345.8 trillion) has been pledged for JETP Indonesia, with over USD 1 billion (approximately IDR 15.8 trillion) already allocated for just energy transition programs in the country.
On the social front, Indonesia Field Organizer for 350, Suryadi Darmoko, argued that JETP’s funding in Indonesia has not significantly impacted communities: “JETP’s effect on the people is non-existent—so where’s the ‘just’ in it? The money goes to companies that depend on fossil energy. The funding is not equitable.” He urged that future JETP financing consider this aspect by incorporating grant-based funding.
From a labor perspective, there remains a gap between industrial workers’ conditions and the global urgency for fossil fuel transition. Industrial workers continue to fight for their fundamental rights, which have long been neglected in the fossil-based energy sector. “We are still fighting for our rights as workers, especially regarding wages. The Omnibus Law does not support us. However, we still love our planet,” said Unang Sunarno from KASBI, referring to labor struggles under the controversial labor law.
Dwi Sawung, National Campaign Manager for Spatial Planning and Infrastructure at WALHI, highlighted structural issues in Indonesia’s energy transition, particularly regarding the environment: “There are many false solutions, such as converting natural forests into Energy Plantation Forests (HTE).” HTE forests produce biomass as a renewable energy source, but their establishment often involves deforestation.
Senior Researcher and Coordinator of Aksi Ekologi dan Emansipasi Rakyat (AEER), Pius Ginting, offered recommendations for implementing a just energy transition: “Existing coal-fired power plants need to be retired. If geothermal energy is to be a replacement, its development must be site-specific, with biodiversity impact assessments.”
In the same event, M. Arifuddin, Coordinator for Energy Conservation Program Preparation at the Directorate General of Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM), acknowledged that Indonesia’s just energy transition program depends on investment. The government seeks close cooperation with JETP to achieve this transition. “We encourage JETP to support the government in financing. We need 253 power plants to provide electricity from Aceh to Papua. We also urge grant funding to be directed toward community-based projects,” he stated.
