Indonesia Delays Plan to Invest $20 Billion in Energy Transition Funds
Indonesia has pushed back until later this year plans to announce investments from a fund of $20 billion pledged by rich countries and global lenders to help speed transition to cleaner energy sources, authorities said.
A coalition of nations led by the United States and Japan, has promised to mobilise public and private finance under the so-called Just Energy Transition Partnership (JETP).
The initiative aims to help Indonesia shutter coal power plants, adopt greener sources of power and advance the sector’s peak emissions target by seven years to 2030.
The detailed investment plan was widely expected to be made public on Wednesday, but the officials charged with drafting it said the timeline for publication had been delayed as additional data was added to the model.
The delay would allow technical experts the further time needed to prepare a credible pathway for the power sector transition, they said in a statement.
The government and the JETP partners have received a draft of the plan, the officials said, but details will not be made public until the government has reviewed it.
A think tank, the Institute for Essential Services Reform, which is part of the technical working group, said power plants now being developed by manufacturers for their own industrial use would have to be added to the experts’ calculation.
Related Article: Indonesia Boosts Energy Leadership to Deliver on $20 Billion Commitment
Environmentalists have criticised the drafting process for a perceived lack of transparency.
“Without the intense transparency of the funding scheme, a just energy transition is not possible,”
said Bhima Yudhistira, director of the Center of Economic and Law Studies think tank.
He added that he feared affected communities were not being considered in the planning.
The JETP Indonesia Secretariat said the delayed timeline would also provide a window for public comment before the investment plan was finalised.
The ESG News Editorial Team is comprised of veteran financial journalists and sustainability analysts dedicated to providing real-time, objective reporting on global ESG regulations, climate finance, and corporate governance. Our desk monitors daily developments from the SEC, IFRS, CSRD and international regulatory bodies to ensure our 1M+ readers receive accurate, data-driven insights into the evolving sustainable investment landscape. Follow the ESG News Editorial Team for expert reporting on global sustainability standards, ESG disclosures, and climate policy. Access over 10,000 investigative reports and real-time updates.
