RMl

Indonesia’s

JustEnergy

Transition

Partnership(JETP)

Aretrospectiveofprogressandnavigatingchanges

Report/June2025

AuthorsandAcknowledgments

Authors

RizkyFauzianto

AndikaAkbarHermawan

BrianO’Hanlon

WiniRizkiningayu

SelimSardag

Authorslistedalphabetically.AllauthorsarefromRMIunlessotherwisenoted.

Contacts

RizkyFauzianto,rfauzianto@

WiniRizkiningayu,wini.rizkiningayu@rmi,org

CopyrightsandCitation

RizkyFauzianto,AndikaAkbarHermawan,BrianO’Hanlon,WiniRizkiningayu,andSelimSardag,

Indonesia’sJustEnergyTransitionPartnership(JETP):ARetrospectiveofProgressandNavigatingChanges,RMI,2025,

/insight/indonesias-just-energy-transition-partnership-jetp

.

RMIvaluescollaborationandaimstoacceleratetheenergytransitionthroughsharingknowledgeand

insights.Wethereforeallowinterestedpartiestoreference,share,andciteourworkthroughtheCreativeCommonsCCBY-SA4.0license.

https:///licenses/by-sa/4.0/

.

AllphotosbyiStockunlessotherwisenoted.

AboutRMI

RockyMountainInstitute(RMI)isanindependent,nonpartisannonprofitfoundedin1982thattransformsglobalenergysystemsthroughmarket-drivensolutionstosecureaprosperous,resilient,cleanenergy

futureforall.Incollaborationwithbusinesses,policymakers,funders,communities,andotherpartners,

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Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/2

Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/3

TableofContents

Introduction:ReflectiononIndonesiasJETP 1

GovernanceBarrierstoAdvancingIndonesiasEnergyTransition 3

EnergyPlanningComplexitiesinIndonesiasPowerSector 3

TheNeedforaComprehensiveFrameworkAlignedwithNationalStrategies 4

ChallengesinRealizingJETPFinancingCommitments 4

NewVisions,NewLeadership 6

LeadershipTransition:FromLessonsLearnedtoClosingTargetedGaps 6

AligningtheJETPwithIndonesiasMoveUptheValueChainVision 8

ReconcilingGrowth,EnergySecurity,andDecarbonization 9

LeveragingNewJETPLeadershipforConveningPowerandCollaboration 10

ShiFocusFromCoalExitOnlytoEnsuringSecureand

AordableCleanEnergy 12

MajorPolicyHurdlesHinderingCoalRetirementEorts 12

OptimizingCoalRetirementwithRepurposingalongwithRenewables 13

EnsuringWorkforceDevelopmentintheEnergyTransition 15

BuildingHomegrownTransitionStrategiesthroughLocalIntegration 16

Conclusion:FromPledgetoPathway—ReframingIndonesias

EnergyTransitionthroughtheJETP 18

Endnotes 19

Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/4

INTRODUCTION

ReflectiononIndonesia’sJETP

WhenIndonesia’sJustEnergyTransitionPartnership(JETP)waslaunchedin2022,itintroducedsomething

unprecedentedinSoutheastAsia:amechanismforfinancingtheearlyretirementofcoal,pairedwith

cleanerpowerdevelopment,whileensuringfinancialprotectionforassetowners,investors,andthe

government.Thiswasamajorinnovation—notjustinambition,butalsoinstructure.Itcreatedthe

foundationfordialogueacrossministries,financialinstitutions(FIs),andcivilsociety,andofferedawaytoalignclimateactionwithfinancialriskmanagement.TheJETPalsouncoveredtheneedtotransitionandsetapolicyprecedentfordecarbonizingcaptivecoal—whichhasbeenagrowingphenomenonasIndonesiapursuesitsindustrialanddevelopmentgoals.

ButwhiletheJETPsucceededinbuildinginstitutionalandfinancialarchitecture,ittoooftenunfoldedoutsidethebroadercontextofIndonesia’sdevelopmentgoals.Theearlynarrativecenteredonemissionstargets

andcoalretirement,withoutconsistentlylinkingtheseeffortstonationalpriorities:jobcreation,industrialgrowth,andenergysecurity.Theresultwasaclimate-firstplatformwithlimiteddomesticresonance.

Today,theJETPstandsatacrossroads.Politicalconditionshaveshifted.TheCoordinatingMinistryofMaritimeAffairsandInvestment(CMMAI),whichdroveearlymomentum,isnolongerthecentralactor.ImplementationnowfallstotheCoordinatingMinistryofEconomicAffairs(CMEA)andtheMinistry

ofEnergyandMineralResources(MEMR)—technicallycapablebutpoliticallyconstrainedagencies.

Meanwhile,internationaldynamicshaveevolved,withGermanyassumingtheInternationalPartnershipGroup(IPG)chair.

Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/5

Thismomentoffersbothachallengeandanopportunity.Therightresponseisnottolowerambition,buttorepositiontheJETPwithinIndonesia’snationaldevelopmentarc.Thatmeansmovingfromanarrativeandprogramofactionwithasolelycoal-to-cleanfocustobecomingadriverofeconomicanddevelopmentgrowththroughwell-plannedclean,secure,andaffordableenergytransition.

Indonesia’spolicyprioritiesareenteringanewphase.Withaspirationsfor7%–8%annualeconomic

growth,ananticipatedsurgeinelectricitydemand,andintensifiedeffortstoclimbtheindustrialvalue

chain,thepolicyfocusisshifting.AmongtheimportantquestionsaboutIndonesia’senergytransitionthatmustbeaddressedare:Candecarbonizationaccelerate—notdelay—industrialgrowth?Howdoesenergytransitiontranslateintogoodjobsandinvestment?Cancleanenergybecomeacompetitiveadvantage,notacostburden?TheJETPmustanswerthesequestionsdirectly—orriskbecomingirrelevanttodomesticstakeholders.

Tosustainsupport,theJETPmustberedefinedasaplatformforprosperity.Thatmeansembedding

theenergytransitionwithinIndonesia’sbroaderstrategyfordevelopment.Insteadofviewingemissionsreductionasthegoal,itmustbepositionedasthemeanstodeliverindustrialcompetitiveness,energyreliability,andlong-termaffordability.

Doingsorequiresmorethantechnicaltweaks.Itdemandspoliticalalignment,institutionalcoherence,

andclarityofpurpose.Ministries,thestate-ownedutility(PLN),localgovernments,andFIsmustacton

asharedvision:thatcleanenergyisn’taforeignimposition,butasovereignstrategyforgrowth.This

retrospectiveisnotacritiqueoftheJETP’sintent.Earlyprogresswasrealandnecessary—theJETP

catalyzedlong-overduereformsandbroughtnewactorsintotheroom.ButIndonesia’senergytransitioncannotproceedonexternaltermsalone.Itmustreflectthecountry’sownaspirationsforprosperity,globalcompetitiveness,andcitizenwelfare.Withnewleadership,thetimeisrighttorepositiontheJETPnotjustasaclimatemechanism,butalsoasadevelopmentengine—onethatenablesIndonesiatogrowfaster,cleaner,andfairer.

Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/6

LessonsfromEarlyJETPEfforts

TheJETPrepresentsanimportantmilestoneinIndonesia’senergytransitionjourney,wherefinancial

supportforvariousstakeholders,includingowners,investors,andthegovernment,formedthebackboneofthiseffort.SincethesigningoftheUS$20billioncommitmentinNovember2022,thefundinghasgrowntoUS$21.6billion,1andtheinitiativehasestablishedatransparentgovernanceplatform,facilitatingover200stakeholderconsultationswithmorethan100civilsocietyorganizations(CSOs)andmobilizingbothpublicandprivatefundingformostlyrenewableenergy(RE)projects.However,bureaucraticchallengescontinuetohinderthetimelyimplementationoftheseprojectsandtheinitialemphasisoncoaltransition,whilecrucial,wasperceivedasinsufficientlyintegratedintoIndonesia’sbroaderdevelopmentagenda.

DrawingfromearlyJETPexperiences,therearekeylessonstoconsiderforfutureimprovementstrategies:

GovernancebarrierstoadvancingIndonesia’senergytransition

ChallengesrelatedtogovernmentstructurehaveimpededIndonesia’sprogressinenergytransition.EvenwiththeCMMAIactingasachampionministry,drivingtheenergytransitionagendaamongdifferent

governmentagenciesprovedtobechallenging.WithCMMAInolongeroverseeingenergytransitionefforts,thegovernancechallengebecomesmorepronounced,especiallybecausetheJETPSecretariatandMEMRlacktheauthoritytooverseePLN.Furthermore,theJETPSecretariatdoesnothavethemandatetooverseenegotiationsbetweenthestate-owneddevelopmentfinancinginstitution(PTSMI)andfinanciersregardingfundingarrangements,northeauthoritytoinfluenceotherministriesinimplementingadaptivepolicy

reforms.Theabsenceofcoordinatedpoliciesamonggovernmentagenciescoupledwithrelativelyweakpolicyenforcementhaveresultedintheconstructionofpowerplantswithoutcorrespondingdemandandindustrialdevelopmenttoeffectivelyutilizetheelectricitygenerated.ThismisalignmenthascontributedtotheoversupplyofelectricityinIndonesia.Addressingthisgovernancegaprequiresstrongerinteragencymandates,empoweredcoordinationbodiessuchastheNationalEnergyTransitionTaskForce,andclearerlinesofauthorityfortheJETPSecretariat.

EnergyplanningcomplexitiesinIndonesia’spowersector

AkeychallengeforIndonesia’senergyplanningprocesshasbeentheavailabilityofreliabledata.PLNandMEMRhaveoverestimatedachievabletargetsduetorelianceontop-downforecastingandlegacygrowthassumptions.Thedemandforecastingmethodologyisbasedsolelyonhistoricaldata.Additionally,the

planningframeworkhasbeenshapedbyanambitionforrapideconomicgrowthtoovercomethemiddle-incometrap.However,thisapproachhasnotsufficientlyincorporatedkeyconsiderationssuchasenergyefficiencyprogress,culturalfactorsinfluencingenergyconsumptionpatterns,andthepaceofindustrialparksdevelopment.

GiventhehistoricaltendencyofenergyplanningeffortsinIndonesiatodeviatefromprojectedtargets,itisimperativetoestablishamechanismforconcurrentandperiodicupdatesacrossrelevantinstitutions.StrengtheningenergyplanningthroughsuchmechanismswillenhanceIndonesia’sabilitytorespond

effectivelytoevolvingchallengesanduncertaintiesinitseconomicanddevelopmentallandscape.

Indonesia’sJustEnergyTratIiaPpait.riJ:EIdPo):nAeirciriressandnavigatingchanges/7

Theneedforacomprehensiveframeworkalignedwithnationalstrategies

TheearlyfocusoncoaltransitionunderscoredIndonesia’scommitmenttocarbonreduction.However,thisapproachlackedadirectconnectiontobroadernationalgoals,suchaseconomicgrowth,jobcreation,

andenergysecurity.Aholisticapproach—suchasthecoalrepurposingframeworkthatcanbeapplied

tothepowersectortransitionroadmapissuedbytheGovernmentofIndonesia(GOI)—MEMRRegulationNo.10/2025—isessentialtoeffectivelybalanceeconomicneedsanddecarbonizationobjectives.By

repurposingcoalassets,Indonesiacanfacilitategradualdecarbonizationwhilepreservingindustrialvalue,employmentopportunities,andregionaleconomicdevelopment.Suchanintegratedframeworkwould

bridgeenvironmentalgoalsandsocio-economicpriorities,fosteringaresilientenergytransitionpathway.

However,thecoalrepurposingframeworkdevelopedbytheJETPTechnicalWorkingGroup(TWG)isat

oddswiththelatestPLNElectricitySupplyBusinessPlan(RUPTL)2025–2034.Forinstance,biomassco-

firing,identifiedintheframeworkasalastresortduetoitslimiteddecarbonizationpotential,iscentraltoPLN’scoalphase-downstrategydespiteitslimitedemissionsreductionpotentialandrisksofunderminingdeeperdecarbonizationpathways.LegalandfinancialconsiderationsdrivePLN’srelianceonco-firing,

highlightingamisalignmentbetweenexternalframeworksandnationalpriorities.Itisessentialto

recalibrateexternalframeworkstoalignwithIndonesia’sstrategy,evenifitinvolvesreevaluatingexistingstrategiesaboutdecarbonizationpathways.

ChallengesinrealizingJETPfinancingcommitments

RegardingtheJETPfunding,financingcommitmentsfromtheIPGandtheGlasgowFinancialAllianceforNetZero(GFANZ)havebeenslowtomaterialize.ThesedelayshinderthetimelyimplementationofJETPprojectsanddiminishstakeholderconfidence.Additionally,theeffectivenessandsuccessoftheJETP

willbeprimarilyinfluencedbythedegreeofconcessionalityinthefundingpackage—assubsequent

disclosuresrevealedthatUS$20billioninpledgedfundingislargelycomprisedofcommercialloans,whilegrantsaccountforapproximately1.4%(US$281.6million)ofthetotalpackage(seeExhibit1).2Therefore,overcomingthesechallengesandsustainingmomentuminenergytransitioneffortswillrequirestrategicutilizationofconcessionalfundstoeffectivelymobilizeprivatesectorinvestment,alongwithstreamlinedfinancingmechanismsandenhancedcoordination.

Exhibit1Grant2a0n2d4technicalassistance(TA)statusundertheJETP,June2024

Programs

underdiscussion

6projects

$77.3

million

$144

million

Ongoing

programs

19projects

$59.7

million

Recentlylaunched

programs

13projects

RMIGraphic.

Source:IndonesiaJETPSecretariat

Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/8

NewVisions,NewLeadership

Leadershiptransition:fromlessonslearnedtoclosingtargetedgaps

MorethantwoyearsaftertheJETPwasannounced,progressismixed.Whileseveralimportantpilot

initiativesareunderway,financehasbeenslowtodisburse,primarilyduetothelackofdealflow.

Additionally,datagapspersist,particularlyaroundtrackingemissionsreductions.Therearealsoongoingdebatesamongnationalplannersonhowtobalancecoalretirementtargetswithcurrentindustrialandeconomicdevelopmentpriorities.Aselaboratedintheprevioussection,theinitialphaseoftheJETP

surfacedvaluablelessonsforboththeGOIandtheIPG,yetitalsoexposedcoordination,data,andpolicygapsthatnowmustbeclosed.Germany’sassumptionoftheIPGchairmanshipprovidesthepolitical

momentum—anddiplomaticcover—toresetexpectationsonbothsides.ThechangeinIPGleadershippresentsanopportunitytoadjustJETPprioritiesandbetterintegratewithIndonesia’sbroadergrowthagenda.

DiagnosingthemissinglinksbetweenGOIandIPG/financeinstitutions

TheearlystagesoftheJETPrevealedthreesystematicroadblocks.First,criticaldatasetsaroundload

forecasting,generationsupply,powerplantfinancialprofiles,andemissionsremainscatteredacross

multipleagencies,hamperingunifiedenergyplanningandinvestorconfidence.Intheabsenceofa

secure,interministerialplatform,collaborationamongdifferentgovernmententitiesandverification

ofdatasetsbecomedifficult,impedingtheprogressofIndonesia’stransition.TheJETPcanserveto

connectthevariousGOIagenciesthatholdvaluabledatasourcestoeffectivelypooldataandfacilitate

collaborativediscussion.Otherjurisdictionshavemorepubliclyavailabledata—distributedinawaythatprotectsnationalsecuritywhileencouraginginnovation.Alackofdataaccesscanleadtodelaysinprojectpreparation,andpromptinvestorstoattachariskpremiumtoeveryforecasttheycannotindependentlyverify.

Second,theTWGsupportfortheComprehensiveInvestmentandPolicyPlan(CIPP)paidsignificantfocustothesurgeinelectricitydemandthatwillcomefromIndonesia’sindustrialdevelopment.Nickelsmeltersandaluminumrefineriesplantobuild6.5and2.7gigawatts(GW)ofcaptivepowerby2030,mostofthe

capacitycomingfromcoal-firedpowerplants(CFPP).MostofthisdevelopmentsitsoutsidePLN’sgridsystemplanning,presentingchallengesinmeetingJETP’semissionstargets.

Third,renewablesremaincostdisadvantagedbecausepoliciessuchaslocalcontentrequirementsincreasecapitalexpenditure,fossilfuelsubsidiesdistortoperatingcosts,andsubtransmissionbottlenecksforce

developerstofactorincurtailmentrisk.Arefreshedpartnershipmustnowtacklethesethreebarriersheadon.Data-drivendecisionswillbeinstrumentalinensuringthesuccessoftheJETPCIPP.AsfortheGOIandIPGworkingmoreeffectively,thetwomainpathwaystoimprovedcollaborationarepolicydevelopmentandfinancingenablement.

Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/9

Bridgingthepolicygap

TheIPGwouldliketoseepolicythatenablesREdevelopmenttransitioningfromcoal,aslaidoutinExhibit2.

Exhibit2PolicyreformstoenableREdevelopment

Reform

Opportunity

2023–25Status

Local-content

requirement(LCR)

relaxation

InternationalpartnersurgedIndonesiatoalignoreaseitslocalcontentrulesforREequipment,whichwereseenasabarriertorapidREdeployment.

Reg.MEMR11/2024

TheMEMRregulationexemptsprojectswith>50%foreign-developmentfinancefromstrictLCRs.

State-ownedenterprise(SOE)assetoptimizationandPLN

reform

TheJETPpartnerspressedforreformstoIndonesia’spowerutilityPLNand

otherSOEstoenabletheenergy

transition.KeyasksincludedimprovingPLN’sfinancialviabilityandallowing

earlycoalplantretirements(viaassetdisposal).Untilearly2025,theearly

decommissioningofPLN-ownedcoalplantsriskedbeingclassifiedasa

“statefinancialloss”underIndonesia’sSOELawandanti-corruptionstatutes,creatingstrongdisincentivesforPLNandotherSOEstovoluntarilyretire

underperformingassets—evenwhensuchactionswouldimprovesystemefficiencyorreduceemissions.

Reg.PER-2/MBU/03/2023

TheMinistryofSOE(MSOE)regulationallowsdivestmentorwrite-offofcoalassets“inthepublicinterest.”However,broaderunbundlingisstillpending.

SOELawNo.1/2025

UnderanewSOELaweffectiveFebruary2025,SOEprofitsorlossesbelongtotheSOEitself,nottothestate.ThelawalsoemphasizesthatSOEprofitsorlosses

includebutarenotlimitedtothose

arisingfromthemanagementofSOE

assetsininvestmentand/oroperationalactivities.

Powersectortransition

roadmap

TheIPGandGFANZaskedIndonesiatodevelopadetailedpowersector

transitionroadmap,includingcoal

retirementforitsfleetandtimelineforplantclosures.

Reg.MEMRNo.10/2025

Theregulationintroducesanexplicit

regulatorypathwayforearlycoal

retirement,mandatingstructured

evaluations,interministerialapprovals,andfundingsafeguardstomitigate

legalrisk.Itestablishesthatearly

retirementdecisions—whenbased

onaministry-assignedstudyand

accompaniedbyfinancingagreements—canserveasthelegalbasisforPLN’saction,includingamendmentstopowerpurchaseagreements(PPAs).

RMIGraphic.Source:Analysis

Indonesia,sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/10

Bridgingthefinancinggap

Onthefinancingside,thereisagapbetweenwhattheGOIneedstoenableandacceleratethe

developmentofbankableprojectsandwhattheIPG/GOIhascommittedtothisfar.Progresshasbeen

made,albeitslowly.Manyinternationalbankshaveexpressedinterestbutawaitclearerpoliciesand

bankableprojects.TheIndonesiangovernmenthasclearlyexpresseditsviewthatJETPfundingshould

comewithpreferentialterms—grantsorultra-low-interestloans—ratherthanaddingunsustainabledebt.Todate,JETPpledgesdonotmatchthatideal,consistinglargelyofstandarddevelopmentbankloansandprivateinvestmentsthatexpectmarketreturns.Indonesiaispushingforabetterfinancingmixandsupporttobridgethisgap:ithascalledforlargergrantcomponents,interestratesbelowcommerciallevels,and

moretrulyconcessionalcredittofulfillitsjust,reliable,andsustainableenergytransitiongoals.

AsreportedintheCIPPthatwaspublishedin2023,achievingJETPtargetswillrequireUS$97billionby

2030.JETP’sroleshould,therefore,extendtounlockingadditionalfinancingbyleveragingpublicfundstode-riskprivateinvestmentsandattractblendedfinanceatscale.ThealignmentbetweenfinancingandpolicyinfluenceundertheJETPwillcreateanopportunitytoensurethatpolicyreformsareinsyncwithinvestment.Thiscollaborativeframeworkshouldbeusedtostrengthentechnicalassistancefor

regulatorsandbuildinstitutionalcapacitywithinkeyentitiessuchasPLNandrelevantgovernment

agencies.Thiseffortisneededtoensuretheyareequippedtodesign,implement,andmanagearapidlyevolvingenergyportfolio.

AligningtheJETPwithIndonesia’s“moveupthevaluechain”vision

Indonesia’sevolvingpoliticalvisioniscenteredoneconomicgrowthandinternationalcompetitiveness:

thecountry’svastmineralendowmentshouldunderpinSoutheastAsia’sgrowingecosystemforproducingbatteries,electricvehicles,andlow-carbonmetals.Reliable,affordable,andcleanelectricityisthereforebecomingadeterminantofglobalcompetitiveness,notmerelyanenvironmentalcredential.Indonesia

wantstomoveupthevaluechain—transitioningfromanexporterofrawmaterialstoaregionalindustrialpowerhouse—andtheJETPcanplayakeyroleinexecutionofthiseconomicstrategy.

ConcessionalandblendedfinancefromtheJETPcanaccelerateREbuildoutthatdirectlyfeedsnewgreenindustrialparksinSulawesiandNorthKalimantan.Dedicatedsolar,wind,andgeothermalplantswoulddisplacethecoalorcaptivedieselpowertraditionallyusedinmineralprocessing,bringingnickelsmeltingemissionsdownandimmediatelyenhancingtheexportcompetitivenessofdownstreamproducts.In

parallel,thecaptivepowerstudythatJETPSecretariatplanstopublishinQ3/Q42025offersaroadmapforintegratingcleanelectricityintoexistingsmelters—turninganenvironmentalliabilityintoacommercialadvantage.

Marketsignalsalreadyvalidatethisstrategy.Buyersacrossautomotive,battery,andtechnologysupply

chainsofferofftakeagreementsforsustainablyproducedmetalsandarewillingtopayapremiumfor

verifiablelow-carboncontent.SeveralcriticalmineralscompaniesinIndonesiahavedemonstratedthe

abilitytoproducemineralswithlow-carbonprocesseswhenthenecessaryinfrastructureisinplace.

AluminumbrandssuchasNorskHydroandRioTintowithlife-cyclefootprintsunder4tonsofCOz(tCOz)/tonofaluminumsellatpremiumprices.3Althoughcarbondifferentiatednickelmarketsarelessmature,afewcompaniesinKalimantanandSulawesiwhoseoperationsalreadyemitwellbelowtheglobalaverageproviderobustmeasurement,reporting,andverification(MRV)andthird-partycertificationsystemsareinplacetovalidatecarbonperformance.

Indonesia’sJustEnergyTransitionPartnership(JETP):Aretrospectiveofprogressandnavigatingchanges/11

TheJETPagendaembracesskillsdevelopmentandtechnologytransfer.EarmarkedgrantcomponentscanfundvocationalprogramsinREmanufacturingandgriddigitization,whiletechnologypartnershipswith

German,Japanese,andKoreanfirmsbolsterlocalcapability.Cleanenergydeploymentthusbecomesbothaclimatesolutionandacompetitiveasset,anchoringIndonesia’sreputationasareliablesupplieroflow-carboncommodities.

Finally,theadvancementofpolicyreformisanotherlevertomobilizeprivategreencapitalwellbeyondtheJETPenvelope,strengtheningitshandinclimatediplomacyandnormalizingprivatesectorparticipationthroughoutthecleanenergyvaluechain.Credibilityininternationalmarketswillalsohingeonrobust

certification.BuildingaGreenNickelStandardalignedwithEUBatteriesRegulationsandtheChinese

batterysafetystandard(GB38031–2025)andoperationalizingablockchain-enabledtraceabilityplatformby2026wouldpositionIndonesiaasafirstmoverintransparent,responsiblysourcedminerals—a

statusthatcouldcommandfavorabletradetermslongafterconcessionalfinancehasrunitscourse.

ReconcilingGrowth,EnergySecurity,andDecarbonization

IndonesiaenteredtheJETPwithanofficialgoalof23%REinitsprimaryenergymixby2025.However,

realizingthisgoalhasbeenchallenging.Inearly2024,thegovernmentunveiledadraftupdatetothe

NationalElectricityMasterPlan(RUKN)4thatlowersthenear-termrenewabletargets—downtoabout

17%–19%by2025,andfrom31%(previousplan)to19%–21%by2030.Thisproposal,pendinglegislativeapproval,reflectsmoremodestexpectationsandhasdrawnconcernfromobservers,asitimpliescoalwillcontinuetodominatelongerthancalledforbytheinternationalcommunity.Bycontrast,undertheJETP,Indonesiasetamoreambitiousconditionaltargetforthepowersector:34%ofelectricitygenerationfromrenewablesby2030.Thedifferencebetweenthesefigureshighlightsapolicygap—theJETPgoalsare

higherthanwhatsomedomesticplanscurrentlyproject(seeExhibit3).Onapositivenote,IndonesiadidissuePresidentialRegulation112/2022onRE,instructingPLNtomaximizerenewablesinitsRUPTL.Sincethen,PLNhasupdateditslatestplaninRUPTL2025–2034toprioritizesolar,wind,geothermal,andotherrenewables.Itsetsatargetof61%of69.5GWofadditionalpowercapacityby2034tocomefromclean

energy.

Exhibit3ComparisonofREandemissionstargetssetbythe

NationalEnergyMasterPlan(RUKN)andtheJETPCIPP

2025203020502060

RESha