Indonesia Aims for 44% Renewable Energy by 2030 in $20 Billion G7 Investment Deal to Curb Emissions

Renewable energy commitment will retire only two of the country's currently operating 118 coal-fired power plants and, despite significant skepticism, aims to reduce CO2 emissions from projected 350 million tons to 250 million by 2030.

• Indonesia plans to generate 44% of its energy from renewables by 2030, as part of a US$20 billion investment deal driven by the US and Japan. This move is expected to help Indonesia reduce its CO2 emissions from a projected 350 million tons to 250 million by 2030.
• The Just Energy Transition Partnership (JETP), established by the G7, intends to ease Indonesia's shift away from carbon-based power generation. The funds provided by the JETP are barely sufficient to retire only two out of 118 coal-fired power plants currently functioning in Indonesia.
• The JETP – an initiative viewed as vital to improving the US's standing in the region – is expected to stir up competition between the US and China in the sphere of assisting developing nations with decarbonisation.
• Significant doubt remains about the successful implementation of the agreement due to Indonesia's past failures to fulfill green policy commitments, the difficulties of securing private funding, and the necessity of implementing fundamental policy reforms for promoting renewable energy.
• Indonesia's aim of reducing emissions and fostering renewable energy sources is not confined to one partnership as it continues to seek investment for its green transition from multiple countries, including China. It recently signed at least nine MOUs worth US$54 billion with Chinese companies for the development of renewable energy.

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