ByCharles Kennedy– Mar 24, 2025, 11:30 AM CDT
Indonesia is plowing ahead with its $20-billion international partnership to aid its energy transition despite the U.S. exit from international climate deals and commitments to support the clean energy goals of developing countries.
At the end of 2022, Indonesia, the world’s top coal exporter and heavily reliant on coal for power generation, signed an agreement to launch a Just Energy Transition Partnership (JETP) co-led by the U.S. and Japan and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom.
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However, the Trump Administration has pulled out of all such partnerships, which also included similar commitments for coal-to-clean energy in Vietnam and South Africa, amid the broader policy to withdraw from climate commitments and the Paris Agreement.
Under these partnerships, the richest nations pledge to support with guarantees funding efforts by developing economies to boost renewable energy generation and reduce emissions.
In Indonesia, the JETP financing commitments are now co-led by Japan and Germany, Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, said on Monday.
“The US exit from the Paris Agreement and JETP does not reduce the commitment of the other nine partner countries to support Indonesia’s net-zero emission target,” the senior official said, as carried by Bloomberg.
The international partners have secured $1 billion in guarantees at multilateral development banks, Hartarto said.
Separately, 54 green energy projects in Indonesia have already received international funding commitments – loans, equity, or grants – worth a total of $1.1 billion.
Indonesia’s President Prabowo Subianto said in November that the country plans to phase out all coal-fired and fossil-fueled power plants within the next 15 years.
“Indonesia is rich in geothermal resources, and we plan to phase out coal-fired and all fossil-fueled power plants within the next 15 years,” Subianto said in his address at a G20 summit in Brazil.
By Charles Kennedy for Oilprice.com
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