Jakarta – Just Energy Transition Partnership (JETP) is an energy transition funding partnership between Indonesia and developed countries that are members of the International Partnership Group (IPG). The JETP was agreed on the sidelines of the G20 Summit on November 15, 2022, which contains funding commitments of 20 billion US dollars or more than 300 trillion rupiah in the form of concessions, grants, and commercial financing of 10 billion US dollars from IPG and commercial financing of at least 10 billion US dollars from international banks that are members of the Glasgow Financial Alliance for Net Zero (GFANZ). The partnership between Indonesia and IPG is followed up by the preparation of the Comprehensive Investment and Policy Plan (CIPP) as the basis for the implementation of the partnership coordinated by the JETP Indonesia Secretariat.

On 13 November 2023, the JETP Indonesia Secretariat held a Civil Society Dialogue “Consultation on the Draft Investment Plan and JETP Policy” to provide civil society with a full understanding of the draft CIPP and facilitated feedback efforts as part of the JETP Indonesia Secretariat’s efforts to maintain transparency and accountability. Previously, the JETP Secretariat had finalized the draft CIPP and had uploaded the draft to the official JETP website, namely jetp-id.org for the benefit of public consultations which took place from November 1 to 14, 2023. Furthermore, public input is used as the basis for the finalization of the CIPP which launched on November 21, 2023.

Publish What You Pay (PWYP) Indonesia through Wicitra Diwasasri was present offline as a responder in the public consultation, especially related to aspects of Energy Transition Implementation and Governance. Also present as responders were several representatives of civil society organizations, including from Transparency International Indonesia (TII), Bright Sumatra Network for Clean Energy (STUEB), and the Confederation of Indonesian Trade Unions (KSPI), and moderated by Adithyani Putri, Policy and Communication Specialist, JETP Indonesia Secretariat.

Wicitra gave input on three main dimensions, namely governance, regulation, and institutional. These three aspects are the framework that needs to be considered by JETP. Because the three are interconnected and become aspects that are often used as references from planning, implementation and monitoring and evaluation.

In the regulatory aspect, Wicitra proposed that JETP Indonesia has clear legal force and offers strong policy alternatives. This is intended so that the implementation of JETP in Indonesia is not hampered due to lack of legal force. Moreover, the bureaucratic culture in Indonesia so far often has a reluctance to move when the legal foundation is considered less strong. Some alternative momentum for drafting current regulations and policies that can be used as alternatives to strengthen the implementation of JETP Indonesia such as the New and Renewable Energy Law (EBET), Climate Justice Bill, Electricity Law Revision, Government Regulation Revision (PP) National Energy Policy etc. Strong regulation is also needed considering that the source of funding for JETP is mostly debt.

Wicitra borrowed Ansell & Gash (2007) as a conceptual approach that can be used as a reference in the implementation of JETP, namely collaborative governance. Where governance directly involves non-state stakeholders in a formal, consensus-oriented, and deliberative collective decision-making process. This approach has six important criteria, namely (1) the forum is initiated by a public body or institution; (2) forum participants include non-state actors; (3) participants are directly involved in decision-making and are not merely “consulted” by public bodies/authorities; (4) the forum is formally organized and meets collectively; (5) the forum aims to make decisions by consensus (although in practice consensus is not reached), and; (6) The focus of collaboration is on public policy or public management. This theoretical approach is presented to prevent misinterpretation or simplification of the form of community or public representation in an implementation of governance.

Wicitra also offers references to more participatory institutional models such as the Extractive Transparency Initiative Industry (EITI) model namely by forming a Multi-Stakeholder Group (MSG) or Multistakeholder Group. Where the model places the representation of CSOs with the government and business actors in an equal position. These three elements can play a direct role in decision making. A reference that can be used with lessons learned from the implementation of EITI Indonesia based on Presidential Regulation (Perpres) Number 26 of 2010, which was amended through Presidential Regulation Number 82 of 2020 concerning the Committee for Handling Covid-19 and National Economic Recovery, until it is regulated in the Decree of the Minister of Energy and Mineral Resources (ESDM) Number 122.K / Hk.02 / Mem.S / 2021.

Another aspect of governance that concerned Wicitra was related to the complaint handling mechanism. Although it has been mentioned in the CIPP Draft that the party who will verify this is the JETP Secretariat. However, Wicitra questioned the form of the mechanism in question. Is it intended to accelerate the follow-up of reporting by using instruments already provided by the government such as LAPOR! Or do you want to create your own complaint channel? Meanwhile, in other aspects, mitigation of the risk of the emergence of “false solutions” or the risk of rent-hunters has not been regulated in the aspects of accountability and transparency. In addition, Wicitra also reminded the importance of strengthening the supervisory mechanism and the role of related institutions, including follow-up handling when receiving findings.

In the end, Wicitra questioned JETP’s communication strategy to affected communities as an important actor in the energy transition program. Moreover, the documents downloaded on the website are not necessarily known or can be easily understood by the affected community. The need for public consultation information channels that can be accessed and monitored by the public/community on a regular basis, as well as adding an ad hoc GEDSI working group with a customized period of 3-5 years to ensure that the just transition framework, gender equality, women’s empowerment, and vulnerable groups will be consistently implemented in the implementation of the JETP program.

Author: Wicitra Diwasasri
Reviewer: Aryanto Nugroho