Submission to the Indonesian JETP Secretariat on the JETP Progress Report - 2025 Update

The Institute for Human Rights and Business (IHRB) welcomes the opportunity to provide input and commentaries for the recently published draft of JETP Progress Update Report 2025. IHRB is committed to encouraging responsible business practices around the world consistent with international human rights, labour, and environmental standards. In achieving that, we believe in the importance of effective legislation and policy, as well as incentives that strengthen collaboration between the government, businesses, and community as well as shaping business performance to align with best practices.

Since its launch in 2022 on the height of the G20 Summit taking place in Indonesia, The Just Energy Transition Partnership (JETP) has been a strong mover for the just energy transition agenda in Indonesia. It has been vital in driving the enactment of key regulations related to energy transition including Presidential Regulation No. 112 of 2022 on Acceleration of Renewable Energy Plants Deployment, Minister of Energy Regulation No. 5 of 2025 on Renewable Energy Power Purchase Agreement, and Minister of Energy Regulation No. 10 of 2025 on Power Sector Energy Transition Roadmap. Alongside these developments, Indonesia has also revised its key power sector planning policies that embedded Net Zero 2060 target and power sector decarbonisation objectives. Marking the 3rd year of its implementation, the JETP Secretariat has released a progress update report for public consultation explaining key policies development, progress on 5 JETP working groups, and updated project priority list. 

The current JETP has been implemented through several grants projects, with the just transition mechanism’s operationalisation waiting to be put into test through these projects. The JT Framework serves as a robust benchmark to assess potential impacts and opportunities arising from energy transition projects under or aligned with JETP. However, the current JT Framework infrastructure can be improved to support JETP’s goal in delivering the energy transition in an equitable manner, by integrating operational human rights standards and practices in each and every process of transition.

Particularly for Indonesia, the implementation of JETP rests not only on government commitments and international financing, but fundamentally on business actors across the energy value chain. With almost 50% of the current operating power plants and 71% of the planned power plants under PLN’s business plan operated by Independent Power Producers (IPP), both PLN and partner companies along with other private entities like industrial energy users and financial institutions shape the speed and quality of Indonesia’s energy transition. As such, the private sector is a primary driver whose alignment with just transition principles will meaningfully affect the outcomes of JETP to deliver the ‘justice’ it committed.

Underlining the key role of human rights in ensuring just transition, this submission provides recommendations for JETP Implementation on the following topics:

1. Strengthening the human rights approach in JETP Implementation by integrating human rights with private actor within the partnership’s mechanism
2. Establishing a robust and UNGPs-aligned grievance mechanism for JETP projects
3. Improving enabling conditions for human rights in JETP implementation through policy improvements