On November 14, 2022, at a G20 Leaders’ Summit Side Event in Bali, the Government of Indonesia (GoI), through the Ministry of Finance, officially launched the Energy Transition Mechanism (ETM) Country Platform. This platform is the primary coordination and driving force to encourage a fair and affordable energy transition in Indonesia.

The platform was launched by the Indonesian Minister of Finance, Sri Mulyani Indrawati, the Asian Development Bank (ADB) President Masatsugu Asakawa, the Islamic Development Bank (IsDB) President Dr. Muhammad Sulaiman Al Jasser, and the World Bank Representative Axel van Trotsenburg.

The ETMCP will be critical in coordinating various energy transition activities, channeling fiscal support where necessary, and supporting just transition at the community, regional, and national levels. On July 20, 2022, the GoI appointed PT Sarana Multi Infrastruktur (PT SMI) as the ETM Country Platform Manager, tasked with developing a financing and investment framework for the ETM program.

The ETM Country Platform (ETMCP) will be crucial in orchestrating various energy transition activities, channeling fiscal support where necessary, and fostering a just transition at community, regional, and national levels. On July 20, 2022, the GoI appointed PT Sarana Multi Infrastruktur (PT SMI) as the ETMCP Manager, responsible for developing a financing and investment framework for the ETM program.

PT SMI collaborates with various institutional partners, including:

• Grant partners: Bloomberg Philanthropies & ClimateWorks Foundation’s Global Energy Transition Initiative, UK MENTARI, and Global Energy Alliance for People and Planet
• Financing partners: Asian Development Bank, World Bank, Islamic Development Bank, Climate Investment Funds, HSBC, Standard Chartered, and Japan Bank for International Cooperation
• Knowledge and technical partners: United States Agency for International Development, Global Green Growth Institute, Climate Policy Initiative, United Nations Development Programme, Rocky Mountain Institute, and Climate Bonds Initiative
• Investment partners: Indonesia Investment Authority

As a knowledge partner, GGGI joined the ETMCP by signing an amendment to the Memorandum of Understanding (MoU) with PT SMI on November 14, 2022. GGGI supports PT SMI in improving access to financing solutions for the ETMCP, including providing technical advice on designing financial mechanisms, scaling up the climate finance facility, and supporting PT SMI’s access to the Green Climate Fund (GCF) funding.

As the world’s 6th largest greenhouse gas (GHG) emitter, Indonesia sees 34% of its emissions coming from the energy sector. Through its enhanced NDC, the country committed to reducing GHG emissions from the energy sector by 12.5% (358 MtCO2e) and 15.5% (446 MtCO2e) with international support. To meet its climate ambition, the GoI aims to mobilize USD 4.6 billion through the ETMCP to expedite the retirement of 2 GW of coal-fired power plants (CFPP) and replace them with renewable sources.