Indonesia’s Commitment to a Coal-Free Future: Challenges Ahead
Indonesia’s ambition to reduce its carbon dioxide emissions by 2030 is jeopardized by plans for expanding “captive” coal plants that primarily serve industrial sectors. This was highlighted in a recent report released on Thursday.
Coal and Economic Growth: A Double-Edged Sword
As the largest economy in Southeast Asia reliant on coal, Indonesia stands as one of the leading greenhouse gas emitters globally. However, in a significant policy shift last year, President Prabowo Subianto vowed to completely phase out coal usage over the next 15 years and achieve net-zero emissions by circa 2050.
The national electricity blueprint unveiled in November forecasts an increase in renewable energy sources yet simultaneously anticipates a steep rise in coal production post-2030. Ember, an energy think tank based in London, expressed concerns about this contradiction.
A Contradictory Energy Strategy
“The latest electricity master plan raises alarms over potential increases in coal-generated power,” Ember reported. Previously, Jakarta aimed for renewables to account for 44% of its energy mix by 2030.
The new strategy proposes an addition of 26.8 gigawatts of new fossil fuel capacity over seven years; importantly, more than 20 GW is earmarked for captive use—serving industries rather than supplying the grid.
Currently operating around 49.7 GW from existing coal facilities and with reports indicating there were at least 253 operational plants as of December (according to Ember), many more projects are also under construction across the nation—including those serving industry directly.
The Economic Realities Behind Coal Expansion
No response has been received from Perusahaan Listrik Negara (PLN), Indonesia’s state electric company regarding these developments.Surface remarks from experts like Dody Setiawan caution against expanding captive plants amid global shifts toward sustainable energy policies: “Investing further into such technologies while transitioning elsewhere seems economically unwise,” he stated.
An Opportunity for Renewables?
“Establishing clear commitments aimed at phasing out reliance on fossil fuels coupled with investment into renewables would enable Indonesia to tackle pressing economic challenges linked with its current dependencies,” Setiawan advised.
Poverty and Pollution Risks
The Centre for Research on Energy and Clean Air (CREA) presented findings showing that most industrial-focused growth projects are concentrated around Sulawesi and North Maluku islands. Local populations face heightened health risks due largely resulting exposure along with considerable economic ramifications tied directly back pollution effects,” observed analyst Katherine Hasan from CREA.
Funding Hurdles
In agreement signed last year between developed nations worth $20 billion under the Just Energy Transition Partnership framework intended rapid movement towards clean sources has not translated into visible support yet due tactical delays experienced thus far.”
Global Climate Commitments
This month saw Indonesian environmental representatives reinforcing their degree commitment towards compliance adherence reiterated through measures aligned alongside established goals like those outlined specifically mentioned at Paris climate accords despite contentious debates posed recently following statements made early touting agreement irrelevance due events surrounding former U.S president Trump’s withdrawal previously announced motivations enacting potentially auguring implications further forth along tracks towards fulfilling principles one set follows intervals sought enforceability designated need-based regards outcomes achieved looking ahead necessitating significant enhancements if aspirational objectives reaching coinciding timelines effectively moving forward then met successfully alike criteria contemplated envisioned scope initiated initially throughout century ahead.”
(p class=“article-main__note mt-4”)
©2025 AFP
