Jakarta, October 8, 2023 – Following a final postponement, the Comprehensive Investment and Policy Plan (CIPP) draft was released by the Just Energy Transition Partnership (JETP) Secretariat. “Climate Justice is unfortunately not reflected in the CIPP document” said Firdaus Cahyadi as Communication Specialist in 350.org.
Indonesia succeeded in securing financing for the energy transition from the established industrialized nations, as was announced at the conclusion of the G20 meeting in 2022. The grant program is known as JETP, it’s goal is to hasten the energy sector’s reduction of Greenhouse Gases (GHGs), which are the root cause of the climate catastrophe. The establishment of CIPP in Indonesia is a prerequisite for receiving that funding.
Firdaus Cahyadi went on “The lack of funding scheme for community based renewable energy development is one point that does not reflect climate justice”. ‘While the community-based renewable can give the impoverished, especially those living in rural areas, access to energy”. he stated “Just like residents of other urban areas, The impoverished in the rural area have the same right to development”
Firdaus Cahyadi argues that the right to energy or fuel is an integral component of the right development. He stated “the consequences of that right is the obligation of the government to fulfill it.”
Climate injustice is also reflected in the composition of JETP funding contained in the CIPP. “The composition of JETP funding is dominated by foreign debt,” said Rahmat Maulana Sidik, Executive Director of Indonesia for Global Justice (IGJ), “The mobilization of funding in JETP is a new debt trap for developing countries including Indonesia under the pretext of “energy transition”.
Maulana said “Indonesia as a recipient country for JETP funds should be careful of the JETP funding mechanism”. “Because developed countries that are members of the International Partners Group (IPG) dominantly provide funding in the form of debt of USD 6,936.5 million while the grant fund is only USD 292 million,” he stated. This means that “the composition of the grant is only 2.5% and the remaining 97.5% is debt. So, it is clear that the motives of developed countries are not really serious in making a fair energy transition but rather ensnaring countries through foreign debt.“
Contact Person:
Firdaus Cahyadi
Communication Specialist 350.org Indonesia,
E-mail: firdaus.cahyadi@350.org
Rahmat Maulana Sidik
Executive Director of Indonesia for Global Justice (IGJ)
E-mail: Rahmat.maulana@igj.or.id