IET Joint Office Emphasized Key Highlights in Mobilizing Finance for Energy Transition in the 7th Indonesia Energy Transition Dialogue

The 7th Indonesia Energy Transition Dialogue (IETD), organized by the Indonesia Clean Energy Forum (ICEF) in collaboration with the Institute for Essential Services Reform (IESR), was held in Jakarta from November 4–6, 2024. Since its inception in 2018, the IETD has served as an annual platform for policymakers, business leaders, experts, civil society, academics, and local communities to exchange ideas, share knowledge, and strengthen collaboration toward realizing Indonesia's energy transition.

IET Joint Office had a pleasure to be invited in the one of panel discussion on the mobilizing finance for early coal retirement alongside with representatives from PT SMI (Persero) and PT PLN (Persero). The discussion began with a presentation by an IESR representative, who outlined Indonesia's coal retirement roadmap and emphasized the need to unlock renewable energy investments.

PT SMI, as the country platform manager, shared insights into its role in mobilizing finance for energy transition projects. The organization highlighted efforts to diversify funding sources and ensure adequate compensation for investors during the coal phase-down process. Meanwhile, a representative from PT PLN underlined three critical pillars for achieving early coal retirement: legal and regulatory frameworks, technical readiness, and financial sustainability.

Representing the IET Joint Office, Gitta Arsika Septiani, an Energy and Sustainable Finance Specialist, expanded on the challenges highlighted by previous panelists. She emphasized the need to address unclear entry points for investment and the lack of accessible project information. To bridge this gap, she introduced the IET Channel, a dedicated platform designed to facilitate information exchange between project owners, developers, and financiers. She also provided updates on the Energy Transition Mechanism (ETM) pilot project and ongoing collaborations between key ministries.

The panel concluded by stressing that while early coal retirement is a critical step in Indonesia's energy transition, it requires significant financial resources and careful planning. This dialogue aims to offer a clearer understanding of the government’s strategies for achieving this goal while addressing the challenges ahead.

For more details about the event, visit www.ietd.info