Country platforms and constrained states: the Indonesian JET-P and the twilight of de-risking

The Wall Street Consensus has failed to spur an increase from ‘billions to trillions’ in private investment to support decarbonisation and essential infrastructure in the Global South. Drawing on the green state, international financial subordination and de-risking literatures, we examine the Indonesian Just Transition Energy Partnership (JET-P), whose country-led objectives of phasing out coal-fired power plants and scaling up renewable energy generation by combining public and private finance have shown mixed results and face ongoing (geo)political challenges. Contrary to the belief that public finance will ‘unlock’ greater private investment in decarbonisation, we argue that the Indonesian JET-P exemplifies a counterproductive strategy for phasing out fossil fuels. In fact, JET-Ps limit energy transitions and industrial development by explicitly prescribing reduced state capacity. The shortcomings of the JET-Ps raise questions about the future of ‘country platforms’, which represent one of the most significant multilateral efforts to increase international climate finance and end coal-powered electricity generation. The article highlights the limited ability of international climate finance and the multilateral climate governance regime to decarbonise the global economy while phasing out fossil fuels at the pace required.