Indonesia is still waiting for the promised finance for its just transition under a pact with G7 nations to be disbursed on equitable and accessible terms, in order for it to retire its coal fired power plants. In 2022, $20 billion was promised as part of the G7’s Just Energy Transition Partnership (JETP). But senior government officials told Reuters that the current financing mechanism did not include any grants, and did not fix existing issues such as high costs of retirement. They stated: “If you push us to retire our coal plants early, how do we finance it? The interest on the finance needs to be attractive…If they give a commercial (rate of) interest, what’s the point?”
