Indonesia Expands Clean Energy Goals Amid U.S. JETP Withdrawal

Indonesia's energy transition faces challenges not from a lack of funding but from the slow procurement of clean energy projects by the national electricity monopoly, PLN. Despite the recent withdrawal of the United States from the Just Energy Transition Partnership (JETP), which promised $20 billion in support, Indonesian officials assert that commitments from other nations, notably Japan and Germany, remain intact and will continue to aid the country's net-zero goals. Coordinating Minister Airlangga Hartarto emphasized that the exit of the U.S. will not impact the overall support from nine participating countries and reaffirmed Indonesia's target to cut annual carbon emissions significantly by 2030 while boosting renewable energy's share in its power mix. A new cross-departmental task force has been established to enhance inter-ministerial coordination and accelerate clean energy investments, reflecting the government's commitment to its energy transition goals. The JETP initiative has already disbursed over $1.1 billion across various projects, demonstrating ongoing international collaboration despite recent geopolitical shifts. Indonesia remains focused on achieving net-zero emissions by 2060, continuing to seek alternative funding for its ambitious clean energy projects.