Indonesia minister says others won’t follow U.S. exit from JETP energy transition funding

The United States' decision to pull out of the Just Energy Transition Partnership, an energy transition funding commitment by developed countries, will not impact the other partners' commitment to it, a senior Indonesian minister said on Monday.

JETP, a financing commitment from rich nations and global lenders to help poorer nations adopt cleaner energy, has earmarked $20 billion to help Indonesia cut its emissions.

Earlier this month the U.S. said it had withdrawn from its JETP deals with Indonesia, South Africa and Vietnam. The U.S. commitment in Indonesia was over $2 billion, made up of non-concessional loans, MDB guarantees, and grants.

Chief economic minister Airlangga Hartarto told reporters the JETP  financing commitments are now co-led by Japan and Germany.

"The U.S. exit will not reduce the commitment of nine countries to support Indonesia's net-zero emissions push," he said, reiterating the net-zero target date was 2060 or earlier.

Under the JETP framework, Indonesia is aiming to cut annual carbon emissions by more than 50 million tons to  250 million tons of carbon dioxide equivalent from its on-grid power sector by 2030. It also plans to increase the share of renewable energy in its power mix to 44% by 2030, from around 12% in 2022.

Airlangga said JETP has made funding commitments worth $1.1 billion across 54 projects, including the expansion of the Muara Laboh geothermal plant, and he said the country will find other modes of funding.

Indonesia, the world's top thermal coal exporter, currently sources 60% of its energy from coal, the most carbon-intensive fossil fuel.