Response to Indonesia’s Just Energy Transition Partnership (JETP) Progress Report 2025

Ember argues that Indonesia's JETP 2025 scenario is insufficiently ambitious, particularly regarding the captive power sector, where it suggests that integrating solar PV could significantly reduce emissions. The brief calls for the inclusion of captive power in peaking emission targets, the removal of solar quotas, and the redirection of JETP investments toward coal-producing provinces to mitigate fiscal vulnerabilities and job losses.

• The JETP 2025 scenario for the captive sector is less ambitious than previous proposals, considering only 1.6 GW of coal power plants for early retirement and reuse, compared to 5.5 GW proposed in 2023.
• Integrating 9.4 GW of new solar capacity to replace 6.8 GW of ageing captive coal plants could reduce emissions by 35%, or approximately 4.4 megatonnes of carbon dioxide equivalent (MtCO2e).
• Current JETP scenarios for on-grid and captive power result in total power sector emissions of at least 349 MtCO2e by 2030, which exceeds the 290 MtCO2e cap announced in 2023.
• Coal-producing provinces have faced significant declines in provincial fiscal transfers between 2023 and 2025: East Kalimantan by 41%, South Kalimantan by 30%, and South Sumatera by 23%.
• Approximately 17,000 coal-related jobs are projected to be lost by 2050 due to mine closures, while potential renewable projects and CFPP substitution could create nearly 100,000 jobs in major coal provinces.
• To accelerate the transition, Ember recommends abolishing the Domestic Price Obligation (DPO) scheme, removing solar quotas, and implementing the second phase of the emissions trading system (ETS) to include captive power facilities.

APA

Setyawati, D. D., & Setiawan, D. (2025). Response to Indonesia’s Just Energy Transition Partnership (JETP) Progress Report 2025. Ember. https://ember-energy.org/app/uploads/2025/11/Policy-paper-–-Indonesia-JETP-2025.pdf

Chicago

Setyawati, Dr Dinita, and Dody Setiawan. Response to Indonesia’s Just Energy Transition Partnership (JETP) Progress Report 2025. Ember, 2025. https://ember-energy.org/app/uploads/2025/11/Policy-paper-–-Indonesia-JETP-2025.pdf.

Wikipedia

{{cite report |last1=Setyawati |first1=Dr Dinita |last2=Setiawan |first2=Dody |title=Response to Indonesia’s Just Energy Transition Partnership (JETP) Progress Report 2025 |publisher=Ember |date=24 November 2025 |url=https://ember-energy.org/app/uploads/2025/11/Policy-paper-–-Indonesia-JETP-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{setyawati2025response, author = {Setyawati, Dr Dinita and Setiawan, Dody}, title = {{Response to Indonesia’s Just Energy Transition Partnership (JETP) Progress Report 2025}}, institution = {Ember}, year = {2025}, month = nov, url = {https://ember-energy.org/app/uploads/2025/11/Policy-paper-–-Indonesia-JETP-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }