Jakarta, CNBC Indonesia – The government, in this case the Ministry of Energy and Mineral Resources (ESDM), is tinkering with funding for the energy transition program, including the early retirement of coal-fired steam power plants (PLTU) in Indonesia.
As is known, currently funding for early retirement of coal-fired power plants is less attractive in the eyes of investors. In this way, the government is racking its brains to be able to get funding from foreign investors considering that the costs that need to be spent to retire coal-fired power plants early is not easy.
The Minister of Energy and Mineral Resources, Arifin Tasrif, said that the government is open to the possibility of funding early retirement for coal-fired power plants using state funds, namely the State Revenue and Expenditure Budget (APBN).
“Indeed, there is a need for retirement (PLTU) to be able to open up opportunities to produce early retirement This PLTU with a mutually beneficial cooperation scheme needs more preparation. “If we ask about the use of the APBN, we look at the availability of the budget in the APBN first and then also what the benefits are for,” said Arifin at the Ministry of Energy and Mineral Resources Office, Jakarta, Friday (3/11/2023).
But of course, said Arifin, his party continues to open up opportunities for foreign investors to contribute to funding PLTU early retirement in Indonesia. For example, the funding promised by various developed countries such as the United States in the Just Energy Transition Partnership (JETP).
“So we are really trying to get at least one JETP that can go forward, because this is what we are focusing on first, secondly, we are preparing 4.8 Giga Watt (GW) but at least there is one that can run at 500 Mega Watt,” he added.
The JETP partnership itself is an energy transition funding initiative worth US$ 20 billion or around Rp. 300 trillion agreed between Indonesia and developed countries that are members of the International Partners Group (IPG).
The JETP initiative was announced on the sidelines of the G20 Summit in Bali, November 2022. The IPG consists of the Governments of Japan, the United States, Canada, Denmark, the European Union, Germany, France, Norway, Italy and the United Kingdom.
The JETP Indonesia Secretariat was formed and began operating in April 2023. One of its tasks is to coordinate efforts to prepare CIPP documents collaboratively between the Indonesian government and IPG with the support of working groups consisting of elements of international institutions, think tanks, programs cooperation in the energy sector and civil society.
“The JETP CIPP document is a living document. This means that this document will continue to be updated every year so that it can reflect global economic developments and domestic development priorities,” said Head of the Indonesian JETP Secretariat Edo Mahendra in a written statement, Wednesday (1/11/2023).
Public input submitted before November 14 will be processed by the JETP Secretariat to become the basis for finalizing the CIPP document.
The plan is that the CIPP document which is the basis for implementing the JETP partnership will be launched in Indonesia before the world event on climate change Conference of Parties The 28th (COP) will take place in Dubai, United Arab Emirates at the end of this year.
[Gambas:Video CNBC]
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