Indonesia’s MEMR 11/2024 relaxes local content requirements to attract international funding for renewable energy under the Just Energy Transition Partnership’s (JETP) $20 billion climate financing plan.
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Indonesia’s MEMR 11/2024 relaxes local content requirements to attract international funding for renewable energy under the Just Energy Transition Partnership’s (JETP) $20 billion climate financing plan.
Relaxation of Local Content Requirements
The Indonesian government has eased local content requirements (LCR) for electricity infrastructure development, as stipulated in the Ministry of Energy and Mineral Resources regulation 11 of 2024 (MEMR 11/2024). This change aims to attract concessional funding from international development banks for renewable energy projects. By reducing LCR, Indonesia seeks to foster the growth of its renewable energy sector, paving the way for increased foreign investment and advanced technological integration within its energy infrastructure.
Introduction of the JETP Model
The Just Energy Transition Partnership (JETP) presents a novel framework for…