Recently, France and the European Union jointly announced the establishment of a € 14.7 million technical assistance program aimed at supporting Indonesia's energy transition. This initiative marks the international community's high attention and substantial support for Indonesia's sustainable energy development.

nearAt the Indonesia Energy Transition Facility (IETF) promotion event held in Jakarta, representatives from Indonesia, the European Union, and France gathered together to witness this historic moment. It is reported that the fund is jointly funded by the European Union and France, with the EU allocating 10.6 million euros and the French Development Agency providing 4.1 million euros, totaling 14.7 million euros, which will be used for a five-year technical assistance program.

The main objective of IETF is to assist the Indonesian government in formulating sustainable energy policies and delineating the scope of renewable energy projects. To this end, the fund will be implemented in two parts: one part will be used to support Indonesia's decision-making in the energy sector, and the other part will focus on capacity building programs. Through the organic combination of these two parts, IETF aims to help Indonesia optimize and transform its energy structure, and promote sustainable economic and social development.

At the event, French Ambassador to Indonesia, Vernon, stated that IETF aligns with Indonesia's vision for a just energy transition, which involves creating new economic opportunities, ensuring livelihoods, and supporting vulnerable groups. He pointed out that the plan will pay special attention to state-owned energy enterprises, including Indonesia's national power company PLN, to help them develop substantial renewable energy projects, such as wind and hydropower projects. This will help enhance Indonesia's energy self-sufficiency and reduce its dependence on external energy sources.

The Secretary General of the Indonesian Ministry of Energy and Mineral Resources, Dhadan, also warmly welcomed and supported the IETF. He stated that the fund will become an important cornerstone for Indonesia to achieve the goals of the Just Energy Transition Partnership Agreement (JETP). At the same time, he also revealed the progress of Indonesia's cooperation with other international partners in the field of sustainable mining.

Although Indonesia has made positive progress in energy transition, it still faces some challenges. For example, Indonesia plans to phase out coal-fired power plants ahead of schedule, but this plan has not yet received any international financing support. In addition, although Indonesia has signed JETP agreements with international partners and expects to receive $21.5 billion in funding support, these funds have not yet been fully secured.