Jakarta, INTI - The government will strengthen domestic financing and accelerate regulatory reforms to attract private investment in the clean energy sector amid the slow realization of energy transition funding through the Just Energy Transition Partnership (JETP) scheme.
Edi Prio Pambudi, Deputy for Economic Cooperation and Investment at the Coordinating Ministry for Economic Affairs, stated that international financing mechanisms are not yet capable of meeting the needs to accelerate the national energy transition.
"We acknowledge that international mechanisms such as the Just Energy Transition Partnership are still progressing slower than promised. Only a small portion of the US$20 billion commitment has actually been mobilized," he said during the Indonesia Net Zero Forum 2026 on Saturday, August 1, 2026.
Domestic Investments will be Sourced
In this situation, Pambudi stated that the government will not wait for the full realization of international funding to implement the energy transition agenda. As a precautionary measure, the government is preparing various domestic financing sources to support renewable energy projects.
He explained that the instruments that will be optimized include Danantara, financing from state-owned banks, the issuance of green bonds, and blended finance schemes.
According to Edi, the scheme is designed to reduce project risks and thus increase participation by private investors, both domestic and foreign.
Clearer Policy is Needed
In addition to strengthening financing, the government is also committed to improving the investment climate through regulatory reform. Edi stated that investors need policy certainty more than incentives.
He stated that the government will streamline the licensing process, introduce more bankable power purchase agreements (PPAs), and ensure transparent procurement for renewable energy projects.
"We have heard the investors' message clearly. Speed and certainty are more important than subsidies and incentives," he said.
Meanwhile, the government is also strengthening coordination across ministries and agencies to ensure that energy, industry, trade, investment, and fiscal policies are aligned. Edi believes that policy synchronization is a crucial factor in ensuring that energy transition targets can be achieved through consistent implementation.
Conclusion
The government will strengthen domestic financing and accelerate regulatory reforms to attract private investment in the clean energy sector following the slow realization of energy transition funding through the Just Energy Transition Partnership (JETP) scheme. The government is preparing various funding sources, such as Danantara, state-owned banks, green bonds, and blended finance schemes.
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