JAKARTA - Indonesia has targeted to complete within six months a plan that will spell out investment requirements and opportunities to accelerate its transition to renewable energy.public and private financing deal signed with countries including the US and Japan, during the Group of 20 summit held in Bali on Nov 15 to Nov 16.
Indonesian government will be more keen towards investing in renewables with a higher use of locally made materials, according to Mr Rachmat, who did not provide details on the regulatory barriers. Indonesia’s power generation is about 80 percent reliant on fossil fuel, mainly coal. Under the JETP deal, some of the coal plants will be closed before the end of their operational life, Mr Rachmat said.Retiring them early and replacing them with renewables will incur costs, and that will be borne by JETP financing. Renewable energy uses more expensive technology andwill lead to job transitioning. So all these aspects need to be addressed, with JETP financing coming into play, Mr Rachmat said.
Under Indonesia’s Nationally Determined Contribution, a climate action plan to cut emissions and adapt to climate impacts, the South-east Asian country will continue developing its economy while staying in line with net zero emission commitments. This commitment is notable given that Indonesia’s annual per capita CO2 emissions from burning fossil fuels is 2.3 tonnes, smaller than the global average of 4.