Jakarta. The negotiations for the amount of grants that Indonesia would get under the $20 billion Just Energy Transition Partnership (JETP) climate finance pact are still ongoing, according to the secretariat in charge of overseeing the program.

This means there is still a chance for Indonesia might end up with more or less than the $160 million grant that the Energy Ministry had previously declared. 

The JETP Secretariat will also have to wait until the launch of the program’s comprehensive investment and policy plan (CIPP) in mid-August before disclosing the exact amount of grants. This CIPP document is expected to lay out the technical details, including the portfolio of the JETP programs.

"The numbers keep on changing so I still can't say how much is the JETP grant that Indonesia would receive before the [CIPP launch on] August 16. Because the verification and negotiations are still ongoing," JETP Secretariat communications director Adhityani Putri told a conference in Jakarta on Wednesday.

Adhityani, however, admitted that the JETP grant had fallen short of the Indonesian government’s expectations. 

She added: “ What we do not want to see is that our grant portion is less than that of South Africa, whose grants represent 5 percent of their JETP climate pact.” 

The JETP has its own target metrics. For instance, the JETP calls for Indonesia to cap its power sector emissions at 290 MT in 2030, far less than the baseline value of 357 MT tons. The coal-reliant country should aim for at least 34 percent of renewables in all of its power generation by 2030. In other words, Indonesia has to meet the JETP goals on top of the existing national targets. 

“We already have the nationally determined contribution [NDC] target and the 2021-2030 long-term electricity procurement plan [RUPTL], among others. So the JETP targets are adding to our existing national targets. They are even far more ambitious. Therefore, we need additional funding,” Adhityani said.

Dadan Kusdiana, a senior official at the Energy Ministry, not long ago revealed that Indonesia would only get around $160 million in grants from the JETP donors. The technical assistance portion is expected to be roughly the same amount.

"About $10 billion [of the JETP money] comes from commercial loans. However, we still don't know the interest rate," Dadan told reporters in Jakarta last week.

Coalitions of wealthy nations and financial institutions last year agreed on a $20 billion climate financing for Indonesia. 

The International Partner Group (IPG), which is co-led by the US and Japan, promised to chip in $10 billion of public money. The IPG also includes Canada, Denmark, the European Union (EU), France, Germany, Italy, Norway, and the UK. Financial institutions part of the Glasgow Financial Alliance for Net Zero (Gfanz) will cover the remaining $10 billion. The JETP combines different funding instruments such as grants, concessional loans, and market-rate loans, among others.

South Africa is a fellow recipient of the JETP program. In 2021, France, Germany, the UK, and the US, along with the EU, announced a $8.5 billion green financing pact for South Africa to decarbonize.

Read More: Indonesia Tries to Find Balance Between US-China with IPEF

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