When Indonesia launched its Just Energy Transition Partnership (JETP) in 2022, it set out to pioneer a coal transition mechanism in Southeast Asia — pairing early retirement of coal-fired assets with clean power development and financial safeguards for asset owners and the government. This retrospective report examines the first two years of JETP’s implementation, tracing how shifting political leadership, fragmented governance, and misaligned frameworks influenced the progress even as the partnership committed to mobilize US$20 billion for coal retirement, renewables, and transition activities.

Drawing on stakeholder consultations, policy analysis, and deep dives into Indonesia’s power-planning architecture, the report unpacks four core challenges: (1) institutional gaps that constrain coordination between the JETP Secretariat, Ministry of Energy and Mineral Resources (MEMR), state-owned utility (PLN), and other agencies; (2) data and planning shortfalls that overstate demand and misallocate capacity; (3) financing structures that lean heavily on commercial loans rather than concessional finance; and (4) policy distortions — from coal price caps to rigid take-or-pay contracts — that continue to tilt the playing field toward fossil fuels.

With Germany’s recent chairmanship of the International Partnership Group (IPG) and new leadership under the Government of Indonesia, the report proposes a strategic evolution. It outlines a fully integrated “coal-to-clean” framework that aligns JETP with Indonesia’s “move up the value chain” industrial ambitions — leveraging concessional finance to de-risk private investment in renewables; repurposing coal assets through early retirement, flexible operation, and selective lower emission cost output; and embedding workforce development and local-level ownership at the heart of a just transition.

Three Prioritized Repurposing Strategies Based on the Highest Carbon Abatement Potential

Download the full report to explore the recommendations for transforming JETP from a climate pledge into Indonesia’s engine for clean-energy-driven prosperity.