Jakarta. The Indonesian government remains confident that the US’ plans to withdraw from the global climate pact will have little to no impact on the Just Energy Transition Partnership or JETP green aid package meant for Jakarta.

In 2022, then-G20 president Indonesia announced that it had snagged climate funding worth up to $20 billion under the JETP scheme. Half of that funding came from a pool of public money gathered by a coalition of rich nations called the International Partners Group (IPG) co-led by the US and Japan. The remaining $10 billion would be sourced from a group of international financial institutions. The IPG later decided to increase the funding by another $1.5 billion.

On his first day in office, US President Donald Trump ordered Washington’s withdrawal from the Paris Agreement, a global treaty aimed at curbing climate crisis effects. Trump is known for his anti-climate action stance, and had taken the US out of the Paris accord during his first term. His successor Joe Biden, however, made the US rejoin the pact again shortly after his inauguration in 2021.

Some Indonesian government officials have responded to whether the US’ second exit from the climate pact would affect the JETP green aid package meant to help Indonesia move away from coal. Eniya Listiani Dewi, the director-general for renewables at the Energy Ministry, revealed Thursday that Indonesia would not need to worry about the JETP funding being cut. Eniya said that the funding portion meant for early retirement of coal power plants mainly came from Japan.

“There are a number of countries that are chipping in the JETP climate package. But the money dedicated for coal plant retirement actually mostly comes from Japan, not the US,” Eniya told the press on the margins of the 2025 Beritasatu Economic Outlook forum in Jakarta.

Likewise, Investment Minister Rosan Roeslani said Friday that there was nothing to worry about the JETP aid despite Trump’s Paris Agreement exit. “So the JETP money is approximately $20 billion. It is not only coming from commercial banks. However, companies' corporate social responsibility [CSR] programs, be it that of Rockefeller or even IKEA … are also backing this program. So far, the [US’] commitments remain unchanged,” Rosan stated.

For context, the Global Energy Alliance for People and Planet (GEAPP) and the Energy Ministry inked a memorandum of understanding (MoU) in 2023. Philanthropic organizations IKEA Foundation and the Rockefeller Foundation are among the founding members of GEAPP, which seeks to speed up energy transitions in developing economies. The GEAPP first got launched at COP26 in 2021 with a committed capital of up to $10 billion. As part of the deal, GEAPP will partner with the ministry to support the JETP programs, among others, through technical studies and analyses.

Rosan added: “This is not the first time for the US to pull out of the Paris accord.”

Last July, Alexia Latartoue, the former assistant secretary at the US Department of Treasury, told Jakarta-based reporters that $1 billion of the promised public money under Indonesia’sJETP scheme had gotten approved. About $2.4 billion was still in negotiations for approval at the time.

Indonesia is aiming to reach net zero emission by 2060 or sooner. President Prabowo Subianto even told the G20 economies that Indonesia was looking to achieve the net zero target a decade earlier, precisely by 2050. Energy Minister Bahlil Lahadalia, on the other hand, said Thursday that Trump’s decision to abandon the Paris Agreement had put the coal-reliant Indonesia in a “big dilemma”. According to Bahlil, fellow Paris Agreement signatory Indonesia mulls blending the use of coal and renewable energy to make sure that it can meet the national electricity needs while also complying with the climate treaty. To this end, Indonesia is considering using carbon capture technology to reduce the emissions from its coal plants.

“We are currently calculating the price of coal-fired power generation that is equipped with carbon capture. So we will be able to use ‘clean coal’,” Bahlil said when kicking off the 2025 Beritasatu Economic Outlook conference.

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