The JETP Secretariat has formally kicked off a study on clean energy transitions for captive power use in Indonesia. The study was officially launched by Rachmat Kaimuddin, Deputy Coordinating Minister for Transport and Infrastructure Coordination, also acting as the Head of Implementation Team of the National Energy Transition Task Force. Representatives from the Ministry of Energy and Mineral Resources, Ministry of Industry, Ministry of Finance, Ministry of National Planning/BAPPENAS, Ministry of Trade and the Financial Services Authority were present and addressed the event.

The Kick-Off Event and Workshop consisted of 3 panel discussion sessions. The event opens with a session on policies as well as institutional and regulatory enablers. It is followed by a session on decarbonization and clean energy case studies by private sector actors and state owned enterprises (SOE). Finally, the event is concluded by a session on perspectives on future demand as a driver for clean energy transitions of captive power, presented by voices from the industry.

The event marks a milestone in the study, which aims to undertake the mapping of existing and planned captive power use in Indonesia to investigate potential clean energy transition investments that can drive the lowering of greenhouse gas emissions and enhance competitiveness for Indonesia's industrial products, including critical minerals.

The results of the study will be integrated in to the 2024 Update of the Comprehensive Investment and Policy Plan (CIPP), due to be completed by the end of the year. The JETP Secretariat published the first CIPP in November 2023, which outlines energy transition strategy and investment for the on grid power sector. This year, the CIPP Update will expand the scope to include off-grid power sector investments, as well as energy efficiency and electrification.

Deputy Coordinating Minister Rachmat Kaimuddin, cited Indonesia's complex circumstances and urges the study to reflect on the challenge faced by the government of balancing economic growth through industrialization with the need to lower greenhouse gas emissions and green industrial production processes by transitioning to cleaner sources of energy.

The study is led by the International Energy Agency (IEA) as the lead of the JETP Technical Working Group, and is supported by the Institute for Essential Services (IESR), Rocky Mountain Institute (RMI), Indonesia-Danish Energy Partnership Programme (INDODEPP) and the World Bank as members of the working group. The UNOPS Energy Transition Partnership (ETP) will also provide support the study on the economic impact, while the EU-Indonesia Cooperation Facility (EUICF) will provide support for data acquisition activities.

In addition, the study will also be supported by the Net Zero World Initiative (NZWI), Lawrence Berkeley National Lab (LBNL) and potentially other institutions to conduct asset level case studies.  

Please click here to access the materials of the speakers.

Please click here for photos of the event.

Please click here for a summary of the proceedings.

The event was attended by more than 200 participants online and offline from the public sector, businesses and associations, international and domestic financial institutions, and international development partners and representatives of the International Partners Group (IPG). The State Owned Enterprises who attended and/or spoke at the event include PT PLN (Persero), PT Pertamina (Persero), PT Pertamina Power Indonesia (Persero), PT Aneka Tambang (Persero) Tbk, PT Vale Indonesia (Persero) Tbk, PT Bukit Asam (Persero) Tbk, Semen Indonesia Group, Bank BRI, and PT Sarana Multi Infrastruktur (SMI).

The JETP Secretariat is grateful for the logistical support provided by the Climate Policy Initiative.