Jakarta, 26 October 2023— Civil society launched a white paper in response to the planned JETP investment document in Indonesia, highlighting issues of justice, governance, and implementation. CELIOS Executive Director Bhima Yudhistira emphasized, “The point is to create more fiscal space and shift incentives that have so far benefited extractive and fossil fuel companies toward supporting the energy transition.”
Bhima also stressed the importance of local governments’ role in a just energy transition: “Local governments must be actively involved, from designing investments in the renewable energy sector to anticipating the energy transition’s impacts on various economic and environmental indicators in each region.” ICEL researcher Syaharani added, “Without strong regulatory and policy infrastructure, a just energy transition in Indonesia risks running into bureaucratic and structural barriers.”
Furthermore, JETP must ensure sustainable and participatory governance. Julius Christian from IESR emphasized, “These criteria must be communicated transparently, especially when public funds are used for early retirement, to ensure that the funds are used effectively.” Trend Asia Renewable Energy Portfolio Manager Beyrra Triasdian added that community-based renewable energy is a viable option, but its development remains constrained by capacity building, institutional arrangements, funding, and policy misalignment. The white paper emphasizes the need for regulatory reform, binding renewable energy targets, stronger JETP institutions, local government involvement, and the mobilization of energy transition funding.
Civil society organizations released a white paper responding to Indonesia’s JETP investment plan, highlighting issues of fairness, governance, and implementation. CELIOS Executive Director Bhima Yudhistira emphasized, “The point is to create more fiscal space, and shift incentives that have historically benefited extractive and fossil fuel companies toward supporting the energy transition.”
Bhima also stressed the crucial role of local governments in a just energy transition: “Local governments must be actively involved, from designing renewable energy investments to anticipating the economic and environmental impacts of the energy transition in their regions.” ICEL researcher Syaharani added, “Without strong regulatory and policy infrastructure, a just energy transition in Indonesia risks being blocked by bureaucratic and structural issues.”
Furthermore, JETP must ensure sustainable and participatory governance. Julius Christian from IESR stated, “These criteria must be communicated transparently, especially when public funds are used for early coal plant retirement, to ensure the funds are used effectively.” Renewable Energy Portfolio Manager Beyrra Triasdian from Trend Asia added that community-based renewable energy is a viable option but remains hindered by capacity, institutional, funding, and policy misalignment. The white paper stresses the need for regulatory reform, legally binding renewable energy targets, strengthened JETP governance, local government involvement, and mobilization of energy transition funding.