JETP Indonesia

During the G20 Summit held in November 2022, the Government of Indonesia and the International Partners Group (IPG) announced the second-ever Just Energy Transition Partnership (JETP). At the time of signing, the IPG was co-led by the United States and Japan and included Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom.  

The Joint Statement is a commitment from the IPG to mobilise an initial financing package of approximately USD 20 billion to accelerate Indonesia’s power sector transition, consistent with keeping the 1.5 °C global warming limit within reach, through a combination of public and private finance. Public sector pledges amount to up to USD 11.4 billion, complemented by around USD 10 billion in private capital mobilised through financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ). The financing mix includes market-rate loans, concessional loans, guarantees, private investments, and grants. 

Initially, the Joint Statement adopted in 2022 set headline targets for Indonesia’s power sector, including peaking power sector emissions at no more than 290 MtCO2 by 2030, achieving net-zero emissions in the power sector by 2050, and reaching a minimum renewable energy share of 34% in electricity generation by 2030. However, during the preparation of the Comprehensive Investment and Policy Plan (CIPP) 2023, technical analysis identified a substantial pipeline of captive coal-fired power plants (defined as off-grid facilities primarily serving industrial operations), which could reach approximately 30 GW of installed capacity by 2030. In response, the Government of Indonesia and the IPG agreed to narrow the initial scope of JETP implementation to the on-grid system, with the following revised targets: 1) limiting on-grid power sector emissions to 250 MtCO2 by 2030, 2) increasing the renewable energy share of on-grid electricity generation to 44% by 2030, 3) achieving net-zero in the on-grid power system by 2050. 

Given Indonesia's heavy reliance on coal, the Joint Statement includes various measures to phase down both on-grid and off-grid coal-fired power plants, including accelerated retirement of existing assets, cessation of new on-grid coal-fired power plant development, and restrictions on the expansion of captive coal-fired power plants. 

The JETP emphasises the importance of a just transition for workers, communities, and vulnerable groups directly and indirectly affected by the accelerated energy transition. In particular, it aims to create new opportunities for low-carbon jobs and promote economic development, while also mitigating potential socio-economic losses that result from the transition. 

Implementation framework 

Implementation of Indonesia’s JETP has been operationalised through the Comprehensive Investment and Policy Plan (CIPP) 2023, which translates the Joint Statement into an integrated framework of sectoral targets, investment priorities, policy measures, and project pipelines. Developed by the Indonesian JETP Secretariat, then hosted by the Coordinating Ministry for Maritime Affairs and Investment (CMMAI) and supported by international and multilateral organisations such as the International Energy Agency (IEA), World Bank, Asian Development Bank (ADB), and the United Nations Development Programme (UNDP), the CIPP has been designed as a living document, intended to be updated as technical insights, policy conditions, and implementation progress evolve. 

Governance structure 

Governance and coordination arrangements have evolved alongside implementation. The first phase of the JETP governance structure included a JETP Secretariat financed by Japan via ADB from 2023 to 2025. CMMAI acted as the implementing agency. In October 2024, it was changed to the Coordinating Ministry for Infrastructure and Regional Development (CMIRD). The mandate of the JETP Secretariat included developing and updating the CIPP, overseeing five JETP working groups, and tracking the investment pipeline.  

Following institutional restructuring under Indonesia’s new administration, the Government established the Energy Transition and Green Economy Task Force (Satuan Tugas Transisi Energi dan Ekonomi Hijau, Satgas TEH) in March 2025, led by the Coordinating Ministry for Economic Affairs (CMEA). The Task Force now serves as the central steering body on the Indonesian side. At the partnership level, the United States withdrew from the JETP in early 2025. Germany and Japan subsequently assumed co-leadership of the IPG, maintaining coordination among IPG members and private sector partners. 

Starting January 2026, the second phase of JETP implementation has begun, supported by a German-funded JETP Delivery Unit (JDU), replacing the former JETP Secretariat. Guided by Satgas TEH as well as IPG and GFANZ, it will act in a secretariat fashion to support implementation of the JETP, track and communicate about JETP project implementation progress, operate a strategic platform for dialogue, and debottleneck project realisation.  

Investment Focus Areas 

The technical scope of the JETP has expanded beyond the original CIPP 2023 framing. The first CIPP identified five Investment Focus Areas (IFAs): 1) development of the transmission network; 2) early retirement and managed phase-out of coal plants; 3) acceleration of dispatchable renewable energy; 4) acceleration of variable renewable energy; and 5) development of renewable energy supply chains. 

Subsequent updates have broadened this scope. In 2024, an additional working group on Energy Efficiency and Electrification (E3) was mobilised, and E3 has since been incorporated as an additional IFA. Further thematic areas under consideration include carbon pricing instruments, mainstreaming just transition considerations, and the development of specific strategies to address emissions from captive coal power.  

Reflecting implementation constraints identified to date, the prioritisation of IFAs has also shifted, with early coal retirement and managed phase-out moving from a higher priority position in the CIPP 2023 to a later position in the updated framework, citing technical, legal, and financing considerations. As of the Progress Report 2025 Update, the six Investment Focus Areas are as follows: 

IFA #1: Energy Efficiency and Electrification; 

IFA #2: Transmission Lines and Grid Deployment; 

IFA #3: Dispatchable Renewable Power Deployment Acceleration; 

IFA #4: Variable Renewable Power Deployment Acceleration; 

IFA #5: Repurposing of Coal-Fired Power Plants; 

IFA #6: Renewable Energy Supply Chain Enhancement. 

Project pipeline status 

The JETP Delivery Unit will continue to refine project screening, classification, and portfolio tracking mechanisms. As of December 2025, financing approvals under the JETP framework amounted to approximately USD 3.1 billion, comprising approved programmes, individual projects, and grant-based technical assistance. Key approved projects include the extension of MRT Jakarta lines and renewable energy investments, such as the Muara Laboh geothermal expansion and the Saguling floating solar plant. 

Implementation progress has been shaped by broader system and market conditions. Historical power oversupply has affected the pace of renewable energy procurement by PLN, while regulatory and technical considerations continue to influence the sequencing of coal retirement and repurposing projects. Simultaneously, increasing attention is being directed toward captive renewables as a pathway for decarbonising industrial electricity demand, alongside ongoing analytical work on options to reduce emissions from captive coal power.  

Next steps 

Progress under the JETP is tracked through formal monitoring and reporting mechanisms. The JETP Progress Report 2025 is available on the JETP Indonesia website. The JDU will continue to publish updates on the ongoing implementation of JETP in Indonesia in an updated format.