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Grants not ‘prerequisite’ for JETP success, says Standard Chartered
Standard Chartered said $20 billion JETP funding “is nowhere near enough” to realize the archipelago’s energy transition programs but that amount served as a “catalyst” to attract more funding from the private sector further down the line.
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The floating panels of a solar power plant at Cirata Dam in Purwakarta regency, West Java are seen from above on Sept. 26, 2023. (Antara/Raisan Al Farisi)
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ndonesia's Just Energy Transition Program (JETP) can move ahead even without much grant support, says Standard Chartered, one of the banks under the Glasgow Financial Alliance for Net Zero (GFANZ) that have pledged their support for the initiative.
Speaking in an interview with The Jakarta Post, Standard Chartered corporate and investment banking co-head Sunil Kaushal said grant aid was not a prerequisite for an energy transition program such as the JETP.
“Grants, of course, will be welcome if they come in to reduce overall costs. But is it a prerequisite? No,” said Kaushal in Jakarta on Friday.
He said that grants were needed to accommodate costly energy transition projects, such as the early retirement of coal power plants, but the same requirement did not apply for standalone, commercially viable projects.
“I think it depends also [on] what sort of assets you're retiring, what sort of remaining life they have. The higher the remaining life, the more the cost of retiring it,” said Kaushal.
Read also: Coal phase-out scheme draws minimal JETP funding
Concurring, Standard Chartered cluster CEO for Indonesia and ASEAN markets Rino Donosepoetro said on the same occasion that grants were needed but “that’s not the answer for all of this”.
