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No new impetus seen for JETP under Trump
Climate funding may look more appealing for Trump if Indonesia’s energy transition present an opportunity for American renewable technology companies.
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Floating power: A floating solar power plant at the Cirata Reservoir in West Java that can generate 192 megawatts (MW) of peak electricity is pictured in this undated photo. President Joko “Jokowi” Widodo inaugurated the plant on Nov. 9, 2023. (AFP/Bay Ismoyo)
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onald Trump’s victory in the US presidential election is expected to hamper the progress of Indonesia’s Just Energy Transition Partnership (JETP), as analysts raise concerns that the US president-elect will not prioritize climate change mitigation.
During his campaign, Trump called efforts to introduce more clean energy a “green new scam”. Reuters wrote on Nov. 6 that the president-elect would “refocus the nation's energy policy onto maximizing oil and gas production and away from fighting climate change”.
Moreover, Trump is expected to pull out of the Paris climate treaty again, after having done so in his first term as president in 2020.
M. Abiyan Habib Dzakwan, a researcher at the Jakarta-based Centre for Strategic and International Studies (CSIS), told The Jakarta Post on Tuesday that Trump’s incoming administration would focus on domestic economic growth and increasing energy production, especially through the use of fossil fuels.
Habib said he was doubtful that the JETP would witness “any significant advancement” next year, noting that the US$21.5 billion climate pledge had already seen slow-paced disbursement under the current administration. He expected that the US president-elect would be more reluctant to provide such assistance.
“If we want more investment from American public and private investors, we must evaluate the attractiveness of the projects,” he said, stressing that the Trump administration would focus on whether these projects would be beneficial or profitable for US businesses.
“So the question is, for example, will Indonesia’s energy transition present an opportunity for American renewable technology companies to sell their products here? If yes, then climate funding may look more appealing for Trump,” he added.
