The Indonesian government and the International Partners Group (IPG) need to save and continue the Just Energy Transition Partnership (JETP) Program in Indonesia after President Trump signed the decision of the United States to withdraw from the Paris Climate Agreement, on January 20, 2025.
Coordinator of Action for Ecology and People Emancipation (AEER), Pius Ginting stated “The Indonesian government needs to save the JETP because it is part of energy security. Delaying or slowing down the energy transition will exacerbate the impact of climate change and disrupt energy security. In the dry season, hydropower capacity drops, and shallow rivers even ground coal transport vessels in the Barito, Musi, and Mahakam rivers. Fossil fuel logistics are increasingly disrupted due to the impact of climate change, triggering vulnerability and energy crises. So it is important to continue this transition, including saving JETP (Just Energy Transition) cooperation.”
Based on the Action for Ecology and People Emancipation (AEER) record, at least ten Comprehensive Investment and Policy Plan (CIPP) programs that JETP Indonesia is being implemented. These programs are the addition of investment focus areas, aligning the objectivity of the program with the implementation of funding, studies in the field of energy efficiency and electricity, studies on fossil fuel captive power plants to switch to low-carbon energy plants, studies on energy transition with the concept of justice, and case studies on retiring the Cirebon-1 coal-fired power plant.
JETP also has strict provisions for implementing a just energy transition program. Therefore, the cancellation of the JETP program by Indonesia’s government will eliminate the partnership mechanism, the just transition framework, and the working groups that have produced the foundation and standards for a just and systematic energy transition implementation.
AEER called on the Indonesian government to encourage the movement of southern countries receiving JETP funding to jointly urge the International Partners Group (IPG) and the Glasgow Financial Alliance for Net Zero (GFANZ) to accelerate funding implementation for JETP projects.
In addition, policy reforms in the field of a just energy transition must be clarified to increase Indonesia’s accountability in funding and implementing the JETP. Upcoming documents such as the Second Nationally Determined Contribution (SNDC) as Indonesia’s climate commitment document need to include the plan to retire coal-fired power plants in mitigation actions as one of the national emission reduction efforts, the peak of emissions in 2030. In addition to the SNDC, the New Energy and Renewable Energy Bill (RUU EBET) as a legal basis for accelerating clean energy development must also be aligned with the SNDC.
Pius Ginting added that the JETP should still be able to proceed, as the U.S. contribution of $2.066 billion is 18% of the total IPG funding of $11.6 billion (Rp170 trillion). The remaining 82% of funds, or $9.6 billion, comes from other countries’ supporters such as Germany, Japan, and the European Union.
