Indonesia deploys investment plan for 20 bln USD energy transition pact, illustration photo/ Source: freepik.com

Jakarta – Indonesia on November 21 launched an investment plan to attract 20 billion USD pledged by the US and Japan in a renewable energy transition pact agreed last year for the archipelago to slash emissions and wean itself off coal.

The roadmap, which comes less than two weeks before the COP28 summit in Dubai, outlines Jakarta's vision to reach net-zero power sector emissions by 2050 using cash from the Just Energy Transition Partnership (JETP).

Under the Comprehensive Investment and Policy Plan (CIPP), the Southeast Asian nation will seek to slash its carbon dioxide emissions to 250 million tonnes for its on-grid power sector by 2030. That is down from a previous cap of 290 million.

Indonesian Minister of Maritime and Investments Erick Thohir said the CIPP provides a strategic roadmap for the ambitious energy transition in Indonesia by considering challenges including technical, financial, and social justice.

Indonesia also plans to boost its renewable energy generation share to 44 per cent by 2030, up from an initial target of 34 per cent.

According to CIPP, Indonesia will need at least 97.3 billion USD worth of investments, nearly five times more than the funding promised by the JETP investors, to achieve its target. Of the amount, 66.9 billion USD will be spent for 400 projects that need to be launched no later than 2030.