- The Indonesia investment proposal is to accelerate its power sector decarbonisation.
- The CIPP indicated investments worth $97.3 billion are a plus to achieve the targets.
Indonesia has launched its investment plan to mobilise $20 billion in financing pledged by global lenders led by the United States and Japan. This is to accelerate its power sector decarbonisation, calling for immediate fund disbursement. Under Indonesia’s Just Energy Transition Partnership (JETP), the country seeks to cut carbon dioxide emissions to 250 million metric tons.
This reduction is for its on-grid power sector by 2030 versus estimated business-as-usual emissions of over 350 million. The investment proposal, the Comprehensive Investment and Policy Plan (CIPP), was officially announced following a public consultation period. Currently, Indonesia is one of the world’s biggest greenhouse gas emitters.
Indonesia plans to increase renewable energy in its power generation to 44 per cent by 2030 from around 12 per cent in 2022. Also, Erick Thohir, ad-interim chief minister for investment affairs, said, “We have to move quickly because 2030 is less than seven years away. The partnership must enhance and accelerate the priority projects, including immediately realising the financing commitments.”