"We are striving to get the promised US$20 billion fund by affirming our commitment (to implementing the energy transition)," director general of renewable energy and energy conservation at the ministry, Dadan Kusdiana, said in Jakarta on Tuesday.
The government needs to make all-out efforts to increase the confidence of the parties involved in JETP in Indonesia since the fund is commercial in nature, he added.
Furthermore, Kusdiana informed that half of the promised US$20 billion in funds will come from commercial loans provided by seven international financial institutions that are part of the Glasgow Financial Alliance for Net Zero (GFANZ): HSBC, Citibank, Standard Chartered, Bank of America, Deutsche Bank, MUFG, and Macquarie.
However, the government has not received information about the interest rate of the loans, he added.
Related news: Indonesia's $20 bln energy transition fund not yet disbursed: Minister
Indonesia is projected to receive a grant and technical assistance under the JETP scheme with their value totaling US$160 million each, Kusdiana informed.
Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, revealed on Saturday (June 24) that the promised funding from the Just Energy Transition Partnership (JETP) has not been disbursed yet.
"Mr. Rachmat Kaimuddin (the ministry's deputy for infrastructure and transportation coordination) has prepared all the required steps to receive the fund. We are now currently waiting for the JETP," Pandjaitan informed in Jakarta.
He said that the Indonesian government has been preparing acceleration programs for energy transition, including plans to shut down several coal-fired power plants, that will be supported by the JETP funding.
However, he confirmed that the promised funds have not yet been made available.
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Translator: Sinta Ambarwati, Tegar Nurfitra
Editor: Yuni Arisandy Sinaga
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