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RI needs better regulations for JETP sustainability, CSIS says
A researcher from Jakarta-based think tank CSIS has pointed to the need for greater regulatory support to ensure that Indonesia could meet is JETP targets, particularly after the change of government next year.
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Rice fields surround a solar power plant in Sengkol village, Central Lombok regency, West Nusa Tenggara, as seen in this aerial photograph taken on March 5, 2022. (Antara/Ahmad Subaidi)
T
he Centre for Strategic and International Studies (CSIS) says that Indonesia needs a firmer legal basis to ensure the smooth implementation of the Just Energy Transition Partnership (JETP), especially after President Joko “Jokowi” Widodo’s administration.
Without legal certainty, the program would be less effective in helping the country transition away from dirty energy.
“We see that a strong legal basis for the JETP is critical. Currently, we can see that the basis of commitment for the JETP partnership is still limited to Presidential Regulation No. 112/2022,” Novia Xu, a climate change and trade policy researcher from CSIS, told a discussion in Jakarta on Thursday.
“A presidential regulation is insufficient to ensure sustainability [of the JETP], especially after a change of government,” she added.
Indonesia is currently the world’s eighth-largest greenhouse gas emitter, and is facing challenges in decarbonizing its economy without hurting GDP growth, according to a report by Sustainable Fitch, a research arm of financial services company Fitch Group that focuses on environmental, social, and corporate governance (ESG) issues.
Presidential Regulation No. 112/2022, which was enacted on Sept. 13, 2022, eliminates feed-in tariffs from the renewable energy pricing mechanism, prohibits the construction of new coal-fired power plants, and provides fiscal incentives to encourage investment in renewable energy projects.
Novia pointed out that the regulation still lacked provisions on local content requirements (TKDN), the procurement process and licensing requirements for constructing renewable energy generators.
