Kementerian Koordinator Bidang Kemaritiman dan Investasi

Republik Indonesia

JETP Indonesia Framework

March 2023
Update on a few key agendas

A B C
JETP Secretariat Comprehensive
Projects/ Transactions
Organization and Setup Investment Plan

• Secretariat office and location • Updated forecast on energy • Discussions with key
• Secretariat governance demand, generation, and ministries & institutions
• Organization and operational emission • Discussions with power
structure • View of on-grid and off-grid companies and industries
power system • Preliminary list of pilot
projects

1
 Various potential investments to decarbonize the power sector in Indonesia
have respective suitable investment schemes

Early Retirement Carbon Capture Infrastructure & Grid RE + Storage RE Value Chain

Retire power plants Invest in CCS/CCUS Improve the electricity Enhance RE Build and develop RE
powered by fossil technology to capture infrastructure to technology to be value chain (e.g. solar
fuels before their CO2 emitted from decarbonize suitable for local cell manufacturing) in
natural end of life power generation needs Indonesia

Investment Scheme

Grant Concession Commercial

Social welfare projects to ensure a just energy transition to be also included in investments

2 2
There are also other investment opportunities to decarbonize sectors
outside the power sector in Indonesia

Transportation Buildings Industry

Invest in building the Update building codes (e.g. Electrify heat processes and
ecosystems of electric electrify kitchen stoves) and switch industry away from
vehicles and net-zero improve construction carbon-emitting fuels
emission fuels (e.g. biofuels) practices

3 3
 JETP governance and workflow
Coordination to determine policies for type of projects and financing
options
IPG
GOI Decarbonization
Task Force
JETP
Policy and Secretariat*
Regulatory Action Project Proposal
notification Coordination

Projects Finance
Type of Projects Technical Financing Options
Parties Involved Parties Involved
CFPP Retirement/
Flexibility PLN and/or Supporting
PLN SPV Partners Grant
RE Power
i.e. GEAPP, CSOs, IEA Coordinator &
Development
IPP(s)
Banks under Equity
Grid / GFANZ
Transmission Financing Requirement
PP Captive Owner &
Concessional Loan
RE Supply Chain Other FI(s)
RE Tech
Manufacturer
Just Transition Financing Support Commercial Loan
Decarbonization
Tech Co.
Decarbonization
(EV, Hydrogen, etc) Guarantee

*Hosted by MEMR, institutional support and implementation capacity by

Coordinating Ministry for Maritime Affairs and Investment Republic of Indonesia 4 4
ADB
 JETP Secretariat: Proposed Organizational / Operational
Structure
(Draft for discussion)
Host Organization: MEMR
DOMESTIC RE
I-JETP Secretariat MANUFACTURING
Administration
Near-term
through Technical CAPTIVE POWER
Head/CEO* (full time) Outputs
Assistance (TA)
Lead Analyst Sr. Technical Advisor
Project & Grant Under
Analysts (1-3) (ADB) ENERGY TRANSITION
TA GRID-CONNECTED
ADB Administrator COMPREHENSIVE
funding POWER
Analytical inputs Comms INVESTMENT PLAN
OFF-GRID POWER
Secondees (offices are outside of the secretariat)
• GOI Ministries
• PLN & other SOEs COAL
• ADB DECOMMISIONING/
• Other DPs FLEXIBILITY

JETP Working groups – ad hoc, inclusive and participatory

Just
Technical Policy Finance
Transition
* Indonesian National
Coordinating Ministry for Maritime Affairs and Investment Republic of Indonesia 5 5
 Four JETP Working Groups will be established to drive early
success

Technical Policy Finance Just Transition

Tasks Create roadmap for Develop policy Assist and facilitate Define ESG principles
decarbonization recommendation for financing mechanism to mitigate negative
decarbonization impact to welfare

Supporting
institution
(preliminary)

Coordinating Ministry for Maritime Affairs and Investment Republic of Indonesia 6 6

 Options for JETP flow of financing to fund decarbonization
Projects

Financing Flow Financing Source Intermediaries Financing Recipient Target of Financing

PLN and/or CFPP Early

PLN SPV Retirement

RE Power
Direct Development
IPP(s)

Grid / Transmission
PP Captive Owner

RE Supply Chain
IPG RE Tech
Manufacturer
Just Transition

Indirect
Decarbonization Other Projects (EV,
Tech Co. Hydrogen, etc)

Financing Flow 7 7
Coordinating Ministry for Maritime Affairs and Investment Republic of Indonesia
Steps are needed in order to incorporate renewable energy in the
power system

Variable RE +
Dispatchable Power Source

Baseload RE

Growth
Transmissions
Foundation
Enabler

8
Building domestic renewable energy value chains is critical for
Indonesia to increase its renewables adoption

Review of TKDN (Local Content

Developing RE value chain in Indonesia
Requirements) for renewables
• High level LCR discussion with relevant • Initial engagement with various companies to
ministries and UK setup manufacturing facilities in Indonesia

• Engagement with the UK government as the • High potentials in the domestic and export
JETP LCR working group market for RE components

9
Moving forward, we need to be agile in the face of an
everchanging energy landscape in Indonesia

Many inputs for the JETP Therefore, old way of working Working principles
investment plan are not static wont be suitable for JETP for JETP
Energy demand will Need to avoid working in a Agree on the key policies &
keep increasing "waterfall" manner i.e., working principles for JETP investment
linearly and sequentially through
Technology and energy process Identify and execute no-regret
mix for the energy moves quickly
supply are not fully Linear-sequential process is not
determined yet suitable for the current
landscape Incorporate new inputs and
Many constraints on the • Getting stuck on 1 process iterate action plans
energy system and the will delay all subsequent
financing requirement processes Early successes are required to
are not yet uncovered • Our plan will become gain credibility, momentum,
obsolete over time and continuing support

10
The success story of investing early

11
Thank You