Funding for the Just Energy Transition Partnership (JETP) for Indonesia has increased from the initial agreement of USD 20 billion in 2022 to USD 21.4 billion in 2025, equivalent to IDR 356.2 trillion. The withdrawal of the United States from the JETP partnership has not had a significant impact, as evidenced by the fact that Indonesia has actually received additional funding.
Coordinating Minister for Economic Affairs Airlangga Hartarto said that the JETP's commitment of USD 21.4 billion comes from support from the International Partners Group (IPG) of around USD 11 billion and the Glasgow Financial Alliance for Net Zero (GFANZ) of around USD 10 billion.
"This shows the strength of international confidence in renewable projects in Indonesia," he said after a coordination meeting on the progress of JETP implementation at the Coordinating Ministry for Economic Affairs on Friday (5/12/2025).
As of November 2025, Indonesia has successfully mobilized USD 3.1 billion through the JETP scheme, while another USD 5.5 billion is currently being negotiated for concrete projects.
In addition, the United Kingdom and Northern Ireland also presented two studies related to the Just Framework that provide implementable steps to strengthen economic resilience and inclusiveness in Indonesia's energy transition.
Airlangga expressed his appreciation to the Japanese government for its contribution through the JETP Secretariat, as well as to all IPG donors for their support in preparing the JETP Progress Report 2025, which is currently being finalized.
This report serves as the foundation for strengthening the implementation phase of future energy transition projects and programs, which will be continued under the leadership of the German and Japanese governments through the JETP Delivery Unit (JDU).
In the energy transition pipeline, the government is currently highlighting two priority projects that are expected to have a significant impact, namely the Sulawesi Green Energy Corridor (GECS) and the Dieselization program, which are of interest to international partners. Both require close support from the government, international partners, financial institutions, and industry.
Provide Many Benefits
Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said the main benefit of the Just Energy Transition Partnership (JETP) is to accelerate Indonesia's transition from coal dependence to renewable energy. This project, supported by billions of dollars in funding, aims to reduce carbon emissions, ensure energy security, promote green economic growth, create new jobs, and increase energy independence while ensuring a fair transition for communities and workers.
JETP helps Indonesia achieve its climate targets by significantly reducing greenhouse gas emissions from the energy sector, aiming for net-zero emissions by 2050.
"Preventing climate change is the main benefit of JETP so that Indonesia can switch to clean energy sources," he said.
JETP can also strengthen national energy independence by utilizing domestic renewable resources such as solar, wind, and geothermal energy.
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Chief Executive Officer (CEO) of the Institute for Essential Services Reform (IESR) and energy observer Fabby Tumiwa said that JETP must be supported because its goals are very noble.
Through JETP, Indonesia is expected to become a leader in global climate issues. JETP is a partnership to fund energy transition in developing countries to shift from fossil fuels to low-carbon energy in a fair manner, with a focus on the electricity sector. Indonesia is one of the recipient countries of this program with a funding commitment of $21.4 billion.
"Indonesia must be able to take advantage of this JETP partnership and set an example for other countries in developing energy transition," he told SUAR Jakarta (5/12/2025).
The transition must take social and economic aspects into account so that no group is left behind. The Indonesian JETP partnership was launched on November 15, 2022, on the sidelines of the G20 summit in Bali.
Indonesia's partners consist of the International Partners Group (IPG), which includes countries such as Japan, the United States, Canada, Denmark, the European Union, Germany, France, Norway, Italy, the United Kingdom, and Northern Ireland.
Action at Various Levels
Executive Director of the Institute for Development of Economics and Finance (INDEF) Esther Sri Astuti said that the transition to energy can be achieved through actions at various levels, ranging from government policies (incentives, green building regulations, large-scale funding), industrial innovation (electric cars, nickel for batteries), to changes in individual behavior (energy conservation, use of public transportation, switching to plant-based protein), with a focus on increasing renewable energy, efficiency, and social justice so that no group is left behind.
Government policies and support can take the form of subsidies, tax breaks, and regulations that support clean energy, such as green building standards (rooftop solar panels, bioclimatic design), as well as social protection for those affected. Increasing the production of renewable energy (solar, wind, geothermal) and storage technology can bring about a gradual energy transition.
"Involve the private sector through instruments such as green bonds, and utilize international partnerships (e.g., JETP) for large transition funds," he told SUAR Jakarta (5/12).
