Indonesia and the United States (U.S.) have committed to deepening their collaboration to accelerate the clean energy transition, notably through the Just Energy Transition Partnership (JETP). The agreement was reached during a meeting between President Prabowo Subianto and U.S. President Joe Biden. According to a White House statement marking the 75th anniversary of U.S.-Indonesia diplomatic relations, the two leaders aim to advance clean and renewable energy production and expedite their clean energy transitions. Both countries, along with other partners, continue to collaborate through JETP by implementing a Comprehensive Investment and Policy Plan. JETP, a G7 commitment to support Indonesia’s energy transition, entails funding of USD 20 billion (approximately IDR 314 trillion), which was confirmed at the G20 Summit in Bali in November 2022. However, this funding is provided in the form of loans rather than grants.
Aligned with Indonesia's domestic policy reforms, the partnership will drive investments in renewable energy production, reduce emissions, strengthen the nation’s energy infrastructure, enhance energy security, generate jobs, and stimulate growth in Indonesia's clean energy economy. During the discussions, Biden and Prabowo also addressed carbon capture and storage (CCS) and methane reduction as essential measures for reducing greenhouse gas emissions. The White House noted that both leaders are committed to cost-effective CCS solutions and methane reduction strategies, supporting Indonesia's net-zero emissions target and global climate goals. President Prabowo’s meeting with Biden in Washington, D.C., on Tuesday (November 13), follows his visit to China, where he met with President Xi Jinping. His international tour will continue with appearances at the APEC Summit in Peru, the G20 Summit in Brazil, and a visit to the United Kingdom.
