Just Energy Transition Partnership: Indonesia

Tuesday 15th November 2022 Written Statements

[The Minister of State, Foreign, Commonwealth and Development Office (Mr Andrew Mitchell)]

It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the statement, except in cases of special urgency.

I have today laid a departmental minute outlining details of a new liability being undertaken by the Foreign, Commonwealth and Development Office to support Indonesia’s Just Energy Transition Partnership—JETP. This guarantee will support the development of the JETP and reduce the impact of climate change in the region. The new $1 billion guarantee facility, which will guarantee additional lending from the World Bank, will be conditional on Indonesia implementing the ambitious commitments to energy transition made as part of the JETP, and on the World Bank reaching its lending limits in Indonesia, which would require the Bank to scale up its financial support for Indonesia’s energy transition significantly over several years. If implemented, the UK guarantee would enable the Bank to lend an additional up to $1 billion to Indonesia at affordable rates.

An announcement on Indonesia’s Just Energy Transition Partnership will be made at the G20 summit in Bali, which is between 15 and 16 November 2022. The announcement will note that the guarantee is subject to this parliamentary notification process being completed. The Public Accounts Committee, the Foreign Affairs Committee and the International Development Committee have been notified of this.

FCDO Ministers and HM Treasury have approved this guarantee proposal. If, during the next 14 parliamentary sitting days, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, final approval to proceed with incurring the liability will be withheld pending an examination of the objection.

[HCWS368]