Indonesia's USD 20 Billion Just Energy Transition Plan Delayed for Public Engagement
The Just Energy Transition Partnership (JETP) in Indonesia, a USD 20 billion initiative to shift away from fossil fuels, has faced calls for greater public involvement and transparency. Initially planned for August, the investment plan has been delayed until the end of the year, providing an opportunity for increased public engagement.
The delay in the JETP investment calculator allows the government to involve the public more in the drafting process. This could ensure a just transition, especially for local and Indigenous communities who are crucial in identifying suitable renewable energy solutions. Currently, these communities have not been actively involved in the JETP discussion, raising concerns about a fair transition.
A study by CELIOS and Yayasan Indonesia Cerah highlights the potential impact of the transition. It shows that the early retirement of three coal plants could lead to nearly 5,000 job losses and affect local businesses. Despite this, only a small amount is allocated for coal plant retirement in the JETP deal, with Indonesia needing USD 37 billion to shut down its entire coal fleet by 2040.
The JETP aims to transition Indonesia towards renewable energy with significant international support, including from Fidelity Investments. However, the lack of public participation has made it unclear how much of the public voice has been incorporated into the draft investment plan. With the delay, the government has a chance to increase the proportion of grants in the funding and involve the public more, ensuring a just transition for all Indonesians.
