Enviro News Asia, Jakarta – The Indonesian President’s Special Envoy for Climate and Energy, Hashim Djojohadikusumo, has deemed the Just Energy Transition Partnership (JETP) program, worth $21.5 billion (approximately IDR 353 trillion at an exchange rate of IDR 16,300 per US dollar), ineffective, stating that it has shown no significant progress after two years of implementation. Hashim even went as far as calling the initiative a total failure, pointing out that the United States government has not disbursed a single dollar toward the program.
“JETP is a failed program. It has been two years, and not a single dollar has been disbursed by the U.S. government. It turns out to be just empty talk,” said Hashim during the “ESG Sustainable Forum 2025”, held virtually from Jakarta on Friday (January 31, 2025).
Hashim further stated that the chances of the funds being disbursed have become even slimmer following the change in administration in the United States. President Donald Trump’s withdrawal from the Paris Agreement is expected to halt the program entirely. “So, I think we shouldn’t expect that $20 billion in funding to come through,” Hashim added.
The Just Energy Transition Partnership (JETP) is an energy transition initiative, a collaborative effort between developed and developing countries to support a fair and sustainable shift to clean energy. JETP aims to help developing nations reduce dependence on fossil fuels, particularly coal, by providing financial support, technological advancements, and policy assistance.
During the G20 Summit in Bali in November 2022, a $20 billion energy transition commitment for Indonesia under JETP was announced. This funding pledge later increased to $21.5 billion (approximately IDR 353.5 trillion) at an exchange rate of IDR 16,300 per US dollar. Of this amount: $11.5 billion came from public funds contributed by developed nations under the International Partners Group (IPG), led by the United States and Japan. $10 billion was pledged by major global banks under the Glasgow Financial Alliance for Net Zero (GFANZ).
Five Key Focus Areas of JETP Funding: Transmission infrastructure development, early retirement of coal-fired power plants (PLTU), acceleration of dispatchable renewable energy (stable and controllable energy sources), acceleration of variable renewable energy (weather-dependent sources), and enhancement of the renewable energy supply chain.
One of JETP’s priority projects is the early retirement of the Cirebon-1 Coal-Fired Power Plant (PLTU) in West Java, which has a capacity of 660 megawatts (MW). The project involves collaboration between PT Perusahaan Listrik Negara (PLN), Cirebon Electric Power (CEP), the Asian Development Bank (ADB), and the Indonesia Investment Authority (INA). If implemented, the plant’s operations will end in 2035, seven years earlier than originally planned.
