Home ECONOMY 2.4 Trillion Rupiah JETP Grant Only Enough for Meetings

2.4 Trillion Rupiah JETP Grant Only Enough for Meetings

2.4 Trillion Rupiah JETP Grant Only Enough for Meetings

Jakarta, Timerilis.com – The Just Energy Transition Partnership (JETP) with a funding value of USD 20 billion or equivalent to 300 trillion rupiah from public and private investment only gets a grant for Indonesia of USD160 million or equivalent to Rp 2.4 trillion (exchange rate of Rp 15,000 per USD).

Executive Director of the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira said, although Indonesia has risen to become an Upper Middle Income Country, developed countries have the responsibility to finance the energy transition in developing countries.

“We are not a developed country, we are still an energy market, so it should not only be bigger,” Bhima said at the launch of the National Survey on JETP by Celios, Wednesday (5/7/2023).

According to him, the key to being able to get grants for funding this energy transition is in the bargaining power of the Indonesian Government.

Bhima assesses that Indonesia is still weak and then grows into a developed country for a larger portion of the loan because the IDR 2.4 trillion donated by the International Partnership Group (IPG) country is only enough for the sake of taking care of administration and meetings.

“These are my words, 2.4 trillion Rupiah of grant funds will be used up only for meetings and administration, so meetings to meetings. While 2.4 trillion Rupiah cannot be invested in renewable energy is not enough. JETP ideally 40 percent of the remaining grant funds are (for) creativity, combine with carbon credits, (and) many variants. So that developing countries are assisted by JETP not only by adding new burdens. Now it is seen that it wants to be released like a market mechanism,” explained Bhima.

JETP Secretariat Communication Director Adhityani Putri said the 160 million dollar figure was still under negotiation. It could not be confirmed how much it would be until August 16, 2023, when the Comprehensive Investment and Policy Plant (CIPP) was published.

“The numbers are still changing. Before August 16, I cannot confirm what the actual number is, because the numbers are still changing. As I explained earlier, until August 16 the verification and negotiation process is still ongoing,” Adhitiyani said.

The current government also sees the portion of grants and technical assistance as beyond the government’s expectation, even though the grants are much lower than South Africa by five percent.

“But what can be said, so far the proportion of grants seems to be beyond the expectations of the Indonesian government, which is very low. It turns out that the grant is (five percent) smaller than the proposal in South Africa,” he said. (Eva/Rd)