Indonesia

During the G20 Summit held in November 2022, Indonesia and the International Partners Group (IPG) - led by the United States and Japan and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom announced the second ever Just Energy Transition Partnership (JETP). The Joint Statement is a commitment from the IPG to mobilise an initial USD 20 bn from public and private finance over the next three to five years, to keep Indonesia's commitments to the Paris Agreement and the global warming limit of 1.5°C above pre- industrial levels within reach. The available finance will consist of a mix of grants, concessional loans, market-rate loans, guarantees, and private investments. Of the total investment, public sector pledges account for USD 10 bn, with the private sector aiming to mobilise the remaining USD 10 bn via the support of financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ).

Indonesia CCC

Indonesia's power sector is dominated by coal, which was responsible for over 60% of power generation in 2021. Together with its second-largest power source — natural gas (18%) — and oil (2%), fossil fuels account for 82% of Indonesia’s electricity supply. Established renewable energy sources such as geothermal (8%), hydro (5%) and biofuels and waste (5%) also provide a relevant share of the country’s power, whereas wind and solar still hold negligible shares accounting for a combined 0.2% of power generated in 2021.

The largest share of electricity is used in households (45%), followed by industry (31%) and services (16%).