Overview of JCM in Indonesia

Joint Crediting Mechanism is a proposal by Government of Japan to push Japanese private sector organizations to invest on Low Carbon Development activities in Indonesia by giving incentive. JCM activities covers many sectoral scope, including energy efficiency, renewable energy, deforestation and forest degradation, waste management, fugitive emission, and manufacture industry. Indonesia hopes JCM can be an interesting alternative to supported GHG emissions reduction activities that conducted by both Indonesia private sectors and public sectors and supporting economic growth without overriding environmental sustainability.

Indonesia and Japan have already started discussing and negotiating about JCM cooperation from 2010. Until end of 2016, 108 feasibility studies have been undertaken under the cooperation between Japanese Company partnership with Indonesian private companies and central and local government. The feasibility studies have been done covering the fields of renewable energy, energy efficiency, forestry, transportation, carbon capture and storage, and agriculture. It proves the high interest and the magnitude of opportunities in project development under JCM.

After three years of negotiating process, The Government of Indonesia and The Government of Japan have been signed a cooperation agreement on August 2013. Government of Indonesia was represented by Coordinating Minister of Economic Affair of Indonesia, Mr. Hatta Rajasa and Government of Japan was represented by Foreign Affairs Minister of Japan, Mr. Fumio Kishida.This event was starting line for JCM Development and marked the official start of cooperation for JCM programs in Indonesia.