Transformative Comprehensive Investment and Policy Plan (CIPP) Charts the Course for a Greener Future


In a historic moment, the International Partners Group (IPG), led by the United States and Japan and including Canada, Denmark, the European Union, Germany, France, Norway, Italy, and the United Kingdom, jointly welcomed the launch of Indonesia’s Just Energy Transition Partnership (JETP) Comprehensive Investment and Policy Plan (CIPP).

Launched in Jakarta on November 22, the CIPP is a strategic roadmap crafted through a year's worth of collaboration between the Indonesian government and the IPG. It outlines a clear path for achieving the goals set forth in the JETP Joint Statement, announced at the G20 Leaders’ Summit in Bali last year.

Under the Joint Statement, Indonesia committed to limiting emissions, accelerating renewable energy development, and reaching net-zero emissions in the power sector by 2050. To support these bold targets, the IPG committed to mobilize $10 billion in financing, while the Glasgow Financial Alliance for Net Zero (GFANZ) pledged an additional $10 billion. This $20 billion funding package will be distributed through grants, concessional and non-concessional loans, investments, and guarantees.

The CIPP provides a technical roadmap for Indonesia's on-grid power sector, suggesting policy changes crucial for a successful transition, and articulating a just transition plan. It will guide the allocation of the $20 billion JETP financing towards specific projects and priorities for Indonesia's energy transition.

Initially, the CIPP technical pathway focuses on Indonesia's on-grid power sector, aiming to reduce emissions to 250 MT CO2 from a baseline of 305 MT and achieve a 44% renewable energy generation share by 2030. The partnership will conduct further analysis of Indonesia’s off-grid power sector in the coming months.

The funding will be directed towards various areas, including renewable energy deployment, transmission and grid expansion, phased reduction of emissions from coal plants, and just transition initiatives.

As the next steps, the Indonesian government and the IPG, supported by the JETP Secretariat, will collaborate to implement the CIPP. The IPG and GFANZ investors are actively working to channel financing towards potential JETP projects, while Indonesia's implementation of the CIPP’s policy recommendations will create a favorable environment for renewable investments.

Ambassadors from the IPG member countries expressed their support for Indonesia's energy transition efforts. Kanasugi Kenji, Ambassador of Japan to Indonesia, highlighted Japan's commitment to co-leading the JETP and contributing to global decarbonization efforts.

Michael F. Kleine, Chargé d’Affaires at the U.S. Embassy in Indonesia, praised Indonesia's leadership in reaching net-zero in the power sector by 2050 and its promotion of economic growth through renewable energy.

The European Union, Canada, Denmark, France, Germany, Italy, Norway, and the United Kingdom ambassadors also expressed their commitment to supporting Indonesia's ambitious move towards clean energy systems and a sustainable future.

The launch of the CIPP represents a collaborative effort to drive Indonesia's energy transition, marking a turning point in the global fight against climate change and supporting Indonesia's commitment to a greener and more prosperous future.

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