Indonesia receives 14.7 mln euro from France, EU for energy transition program

The Indonesia Energy Transition Facility consists of two main components: policy support and project preparation and implementation.

 

Jakarta (Indonesia Window) – Indonesia has received support from the French Financial Group, Agence française de développement (AFD), and the European Union (EU) for the acceleration of the energy transition program in the country, according to a press release received by Indonesia Window in Jakarta on Sunday.

The 14.7-million-euro technical assistance program has been provided to Indonesia to fund the Indonesia Energy Transition Facility (IETF), which was officially launched by Indonesian Ministry of Energy and Mineral Resources (MEMR) and Indonesia’s State-owned Electricity Enterprises (PLN), together with AFD and the EU, in Jakarta, recently.

This program, highlighting the commitment of France and the European Union under the Just Energy Transition Partnership (JETP), aims to support a sustainable and inclusive energy transition in Indonesia.

“In 2024, the realization of greenhouse gas emission reductions in the energy sector reached 147.61 million tons of CO₂ equivalent, exceeding our target of 142 million tons. This means we are still on track for emission reductions,” said Ministry’s Secretary Dadan Kusdiana said during the launch event on February 5, 2025.

To support the energy transition, he added, the government, through the ministry, is fostering strategic cooperation with various stakeholders.

“Together with AFD, as we are discussing today, we hope this collaboration will accelerate Indonesia’s transformation toward a greener, environmentally friendly, and sustainable energy system,” Dadan said.

On the same occasion, PLN’s President Director Darmawan Prasodjo stated that the state-owned enterprise is committed to driving Indonesia’s energy transformation.

“We highly appreciate AFD and the French government for this commitment, which will strengthen PLN’s efforts in providing clean and sustainable energy for the country. This partnership signifies the international community’s commitment to addressing the global climate change crisis. This challenge can only be overcome through a unified approach,” he elaborated.

The IETF program, which will run for five years (2025–2030), is funded by grants from the EU (10.6 million euro) and AFD (4.1 million euro). This program supports France’s 500-million-euro commitment to the Just Energy Transition Partnership (JETP).

“In celebration of the 75th Anniversary of diplomatic relations between Indonesia and France, the launch of the IETF confirms France’s long-term commitment to Indonesia, with the energy transition sector being one of the key areas of our cooperation,” French Ambassador to Indonesia, Timor Leste, and ASEAN, Fabien Penone, highlighted.

According to Director for International Affairs and Climate Finance, Directorate-General for Climate Action (CLIMA), European Commission, Diana Acconcia, JETP provides tangible support for Indonesia’s energy transition.

“The launch of IETF, a joint initiative with France, AFD, MEMR, and PLN, is a key milestone in this journey. As a key JETP partner, the EU remains committed to accelerating clean energy and creating an enabling environment for sustainable investments,” she said.

Team Europe—including the EU, the European Investment Bank, Denmark, France, Germany, and Italy—has pledged 3.5 billion euro in grants and concessional loans under the JETP, she continued.

“Today’s new EU grant contribution of 10.6 million euro for IETF further strengthens our support for sustainable infrastructure under our Global Gateway strategy. Indonesia’s role in the global green transition is vital, and we remain fully engaged to work with Indonesia in a Team Europe approach to drive sustainable economic growth and energy security,” Acconcia explained.

Meanwhile, AFD Country Director in Indonesia Yann Martres said that his institution has a long-term partnership with PLN and MEMR.

“By combining global and local approaches and providing expertise in addition to investment funds, we are collectively building full collaboration on energy transition,” he remarked.

The IETF program consists of two main components: policy support to facilitate a just energy transition which includes the development of regulatory frameworks that promote sustainable and inclusive practices (including environment and gender) while aiming to attract private investment.

The second component is project preparation and implementation, which involves developing renewable energy and transmission projects with high environmental and social standards, and strengthening the capacity of state-owned enterprises in the energy sector.

Reporting by Indonesia Window