The JETP Secretariat, supported by GIZ Indonesia, UNDP Indonesia, and ETP consultants, hosted a Focus Group Discussion (FGD) on Enhancing Just Transition in Jakarta on December 11, 2024. Seventy-one participants from Financial Institutions (FIs), Project Developers, and Associations in the energy and power sectors attended the FGD.
Dimas Muhammad opened the event as the Ministerial expert staff from the Ministry of Energy and Mineral Resources, followed by Paul Butarbutar, Head of the JETP Secretariat, who pointed out a prologue on the importance of Just Transition: “The transition goes beyond being a promising concept on paper; it delivers tangible benefits to the community. A just transition ensures that society is not adversely affected but brings meaningful advantages to local communities and the government.”
Following the remarks by the Head of the JETP Secretariat, the session continued with insightful presentations by Just Transition experts Aang Dharmawan from UNDP Indonesia and Lavalette Erica, an ETP consultant. Moderated by Elrika Hamdi, Deputy Head of the JETP Secretariat, the session encouraged dynamic participation through interactive discussions guided by thought-provoking questions and a Mentimeter word cloud simulation to gather valuable insights from attendees.
This Focus Group Discussion (FGD) highlighted the critical role of collaboration and transparency among various stakeholders in shaping policies to drive an equitable energy transition in Indonesia. Implementing the Just Transition requires continuous engagement, interactive discussions, and coordinated efforts from all stakeholders. By adopting an inclusive approach, the energy transition can balance developers' interests with local communities' priorities, paving the way for sustainable and equitable energy.
Key findings of the FGD underscored that the Just Transition Framework is intended to actively foster project development in Indonesia. The FGD revealed several key insights regarding the operationalization of the Just Transition framework. Participants discussed whether Just Transition should be implemented as strict regulations or as flexible guidelines. There was also dialogue surrounding the feasibility of specific monitoring indicators proposed by the JETP Secretariat, particularly in light of data confidentiality raised by both developers and financial institutions. Additionally, while there is broad acknowledgment that the eight existing standards have significantly enhanced project sustainability and mitigated social and environmental risks, the discussion around Standard 9 remains open. Participants expressed an expectation for government involvement in addressing the associated costs, highlighting the need for further clarity on funding responsibilities. JETP Secretariat is well-placed to support the Just Transition operationalization as part of existing governance.
Irman Boyle, Senior Vice President of Indonesia Infrastructure Finance (IIF), highlighted the importance of building on existing programs to effectively implement the Just Transition standard in Indonesia. He stated, “With the available resources, JETP can establish a well-defined program. Developing a JETP program that resonates with stakeholders can pave the way for creating a detailed project pipeline. Funding for Standard 9 of the Just Transition framework can be sourced from institutions like the World Bank (WB), Asian Development Bank (ADB), or Green Climate Fund (GCF). Utilizing the existing governance system for Just Transition ensures sustainability, as development partners already have the necessary facilities.”
Participants highlighted the importance of implementing Just Transition Guidelines to enable collaborative pilot projects and establish robust monitoring systems that align stakeholder efforts while ensuring accountability. Although stricter social protection regulations may increase costs, they also open doors for financing and project design innovation, creating pathways to balance fairness with efficiency. Additionally, the discussion stressed the need for comprehensive education and community development programs to equip workers with the skills needed for the transition. The regulatory and legal landscape was highlighted as requiring further attention, offering opportunities to simplify processes and mitigate compliance risks. By proactively addressing these challenges, Indonesia is leading toward sustainable and inclusive energy.