Indonesia Utilizes US$3.5 Billion From JETP And AZEC To Accelerate Green Economy Transition

Indonesia has secured nearly US$3.5 billion in funding from the Just Energy Transition Partnership (JETP) and the Asia Zero Emission Community (AZEC) to accelerate its green economy and decarbonization efforts, the government announced on Wednesday.

Coordinating Minister for the Economy Airlangga Hartarto said the funds already utilized from the two international initiatives amount to approximately US$3.5 billion, or around Rp58.79 trillion based on an exchange rate of Rp16,799 per US dollar. He noted that Indonesia’s total green financing allocation under the JETP program stands at US$21.4 billion (Rp359.49 trillion), while the AZEC program has allocated US$500 million (Rp8.39 trillion).

“The acceleration of the AZEC and JETP programs is Indonesia’s commitment to realizing a green economy and decarbonization. From these two programs, we have utilized almost US$3.5 billion,” Airlangga said, as quoted by Antara on February 11, 2026.

In addition to international funding, the government has earmarked significant domestic resources to support the transition. Airlangga said the 2026 State Budget includes Rp404.2 trillion to strengthen energy resilience, including green economy development initiatives.

Several major green projects are currently being prepared and implemented. Among them are the Green Energy Corridor Sulawesi (GECS) and the Green Bond Development Facility (GBDF), both financed through JETP. These projects are aimed at boosting renewable energy deployment and improving sustainable financing mechanisms.

Indonesia is also seeking to tap into its vast renewable energy potential, estimated at 3,686 gigawatts. Plans are underway to develop a 70-kilometer green electricity network, referred to as a green supergrid, to support clean power transmission. Through state investment agency Danantara Indonesia, the government is preparing to build Waste-to-Energy Power Plants (PLTSa), with construction expected to begin in March 2026.

Beyond power generation, the government is advancing several downstream industrial projects linked to the green transition. These include the production of electric vehicle batteries and solar panels, the expansion of biodiesel blending from B40 to B50, and the development of Sustainable Aviation Fuel (SAF). Other initiatives involve hydrogen and green ammonia production, as well as the deployment of Carbon Capture and Storage and Carbon Capture, Utilization, and Storage (CCS/CCUS) technologies.

Airlangga said the green economy push is expected to create up to 4.4 million new jobs by 2029. He emphasized that strengthening energy resilience remains a top national priority, alongside efforts to enhance food security, as Indonesia moves toward a more sustainable and low-carbon future.