Following a leadership rotation, Germany has assumed co-leadership of the International Partners Group (IPG) in Indonesia’s Just Energy Transition Partnership (JETP) alongside Japan, starting in early 2025.

Since the JETP’s launch at the 2022 G20 Summit in Indonesia, Germany has been a steadfast supporter of Indonesia’s energy transition. With one of the largest bilateral project portfolios in development cooperation dedicated to this effort, Germany is deepening its engagement by taking on co-leadership responsibilities, helping to drive the next phase of JETP implementation.

The IPG, comprising the G7 countries, the European Union, Denmark, and Norway, together with the Glasgow Financial Alliance for Net Zero (GFANZ)—a global coalition of leading financial institutions—has pledged to mobilize $20 billion to support Indonesia’s ambitious JETP goals. This commitment aims to limit emissions, significantly accelerate renewable energy development, and achieve net-zero emissions in the power sector by 2050.

To reinforce this commitment, a high-level delegation from the German Federal Ministry for Economic Cooperation and Development (BMZ), led by Director-General Christine Toetzke, visited Jakarta from February 17–21. The delegation engaged with the Indonesian government, Co-Lead Japan, the IPG, the JETP Secretariat, and the broader JETP community to review progress and identify key steps to accelerate implementation.

The discussions confirmed that Indonesia’s JETP is making tangible progress, with the following key milestones from the IPG:

• Nine separate loan and equity investments worth USD 1.1 billion have already been approved, with an additional USD 4.8–5.5 billion in the pipeline.

• One guarantee worth USD 1 billion has been signed, another USD 1 billion guarantee is in process.

• 43 grant-funded projects totalling USD 230 million are actively supporting Indonesia’s energy transition, with an additional USD 97 million under preparation.

• The first JETP project co-funded with private finance, the expansion of the Muara Laboh geothermal plant, was signed earlier this year.

Together with international partners, Germany and Japan remain strongly committed to supporting Indonesia’s energy transition and its path to net-zero emissions. The JETP is not only unlocking new opportunities for green growth but also laying the foundation for sustainable development, economic resilience, and long-term prosperity.

“A green energy supply will further strengthen Indonesia’s global competitiveness, positioning the country as a future-ready production hub and directly contributing to the government’s ambitious economic growth agenda”, Christine Toetzke, Director-General BMZ.

Germany and Japan look forward to continued cooperation with Indonesia and its partners to accelerate a just, inclusive, and ambitious energy transition.