On November 15, 2022, Indonesian President Joko Widodo and a group of nations led by the United States announced a $20 billion climate finance deal to help Indonesia curb its power sector’s reliance on coal, and transition towards a carbon-free energy system. This deal is officially called the Just Energy Transition Partnership (JETP). A year … Read more
In November of last year, Indonesian President Joko “Jokowi” Widodo officially inaugurated the Cirata solar farm in West Java. Built on a reservoir using thousands of floating photovoltaic (PV) panels, the Cirata facility has a generating capacity of 145 MW which makes it the largest floating solar farm in Southeast Asia. It also represents an … Read more
In a global system characterized by geopolitical turbulence, Indonesia stands as a rising economy and key player in international affairs. Over the past two decades, Indonesia has experienced strong economic growth. By 2030, the thriving republic is projected to become one of the world’s seven largest economies and to enter the top five by 2050. … Read more
2023 was a year of big economic news in Southeast Asia. Investors continued to punish tech giants, Tesla entered the Malaysian market, and countries across the region worked hard to control inflation and stabilize their currencies. As we welcome in the New Year, now seems like a good time to take a look ahead at … Read more
For the last several years, clean energy transitions have often positioned early retirement of coal-fired power plants as part of larger decarbonization efforts. Coal power plants operate for decades; so if they can be shut them before the end of their anticipated economic lives it will reduce emissions while clearing out space for more investment … Read more
With the recent release of its Comprehensive Investment and Policy Plan, Indonesia now has a roadmap for its Just Energy Transition Partnership (JETP). And the big headline figure has always been $20 billion in financing commitments from foreign partners in the United States, United Kingdom, Europe and Japan. While that figure is of course substantial, … Read more
Indonesia’s investment plan for the $20 billion Just Energy Transition Partnership (JETP) calls for rapid growth in renewable energy of all kinds. This includes variable renewables such as solar and wind, and also what are called dispatchable renewables like geothermal and hydropower. Solar and wind are intermittent sources of power generation, because they depend on … Read more
With major crises in Gaza and Ukraine, the Biden administration might be tempted to overlook the importance of Indonesian President Joko “Jokowi” Widodo’s mid-November visit to Washington. That would be a mistake. Indonesia is an important country that is heading into crucial presidential elections in early 2024, and the results of Jokowi’s visit could go … Read more
Indonesia’s Just Energy Transition Partnership, the $20 billion fund earmarked for investment in clean energy, took a big step forward in November with the release of the Comprehensive Investment and Policy Plan. One of the requirements under the JETP framework is to prepare a roadmap for how Indonesia will accomplish its energy transition goals (peak … Read more
Advertisement Investment involves risk. The return the investor expects to receive is what justifies the risk. The higher the expected return, the higher the risk. This is a fundamental concept in economics and business. When it comes to global financial flows, especially in emerging markets, this equation is sometimes altered. Investors want high returns to … Read more