Indonesia Confirms $20 Billion Climate Deal Despite US Exit

(Bloomberg) -- The Indonesian government confirmed a $20 billion commitment from rich nations to help it shut polluting coal plants and transition to cleaner energy sources remains in place, despite the US exit from the agreement.

Although the US had pledged to contribute billions of dollars according to investment plans drafted for the Just Energy Transition Partnerships, which included deals for Vietnam and South Africa, it withdrew amid the Trump administration’s wider retreat from climate action. Analysts said this month the US exit could add further delays, but they expected the deals to survive. 

“The US exit from the Paris Agreement and JETP does not reduce the commitment of the other nine partner countries to support Indonesia’s net-zero emission target,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in a briefing Monday. Hartarto said he would lead a new task force to accelerate implementation of the program.

Indonesia has discussed some projects with partner countries, including the Muara Laboh geothermal power plant in West Sumatra, the early retirement of the Cirebon coal plant and a proposed a waste-to-energy project in West Java. 

International partners including Japan, the UK, France, Germany, Denmark, Norway, Italy, Canada and the EU have secured $1 billion in guarantees through multilateral development banks, said Hartarto. Separately, 54 green transition projects have received international funding commitments worth $1.1 billion in the form of loans, equity or grants.

Airlangga spoke to reporters after meeting with representatives from partner nations, the World Bank and members from the Glasgow Financial Alliance for Net Zero.

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