Indonesia's Struggle to Embrace Green Energy Amid Emission Goals
- Indonesia is struggling to meet its renewable energy targets and has not achieved its milestone goals.
- Financial support from Norway aims to assist in the energy transition, but high loan return rates pose challenges.
- The country's commitment to green energy is insufficient, and the transition is not evenly distributed across regions.
Indonesia is striving to reduce its gas emissions and transition to green energy, but faces significant challenges in achieving its goals. The country has not met its milestone targets, and the Just Energy Transition Partnership (JETP) scheme remains unclear. Despite optimism, the government is struggling to reach its target of 23% renewable energy by 2025. Financial support from Norway, amounting to $250 million, is aimed at assisting Indonesia in implementing the JETP, but the high rate of return on loan funds complicates matters. In 2023, a significant portion of Indonesia's debt will be in concessional loans, with additional support from the US and UK. The Energy Transition Mechanism (ETM) was launched in November 2021, yet early retirement plans for coal power plants do not align with principles of justice. Furthermore, the energy transition is not uniformly feasible across regions, as evidenced by varying readiness scores. The government’s commitment to a green energy transition is inadequate, and the lack of clarity in JETP schemes and equitable distribution of resources further hinder progress. Overall, Indonesia's readiness for a successful transition to green energy remains questionable, necessitating substantial improvements in commitment and implementation strategies.