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Indonesia needs funding of about 1.5 billion USD from the International Partnership Group (IPG), to terminate coal mining and production under the Just Energy Transition Partnership (JETP)’s program.
Executive director Indonesian Institute for Essential Services Reform (IESR) Fabby Tumiwa said the institute cannot take on debt for energy and coal mining termination framework unless having to take on debt, preferential financial sources must ensure an interest rate of less than 3%, according to the Vietnam Plus.
The IPGs include the US, Japan, Canada, Denmark, the European Union (EU), France,, Germany, Italy, Norway, and the UK.
Though, about 160 million USD in funding from JETP will be provided to the Indonesian energy sectors. Meanwhile, about half of the 20 billion USD is expected to come from commercial loans. Currently, the Asian country is drafting an investment plan with details for the JETP program and will release it in August.