Indonesia has long been committed to reducing carbon emissions as part of global efforts to address climate change. One significant step taken by the government is the early retirement program for coal-fired power plants.
This target reflects Indonesia's commitment to significantly reducing carbon emissions. According to the plan, the government aims to reduce the operational life of coal-fired power plants from the typical 24 years to just 15 years. It is hoped that this will accelerate carbon emission reductions and support the goal of cutting emissions by 29 percent to 41 percent from projected levels, depending on policy changes.
Coal-fired power plants currently contribute around 60 percent of Indonesia's total electricity production. As one of the world's largest coal exporters, reducing reliance on coal is a major challenge.
The early retirement of coal-fired power plants is seen as an important step in reducing carbon emissions, although the cost of implementing this program is very high. Currently, a roadmap for the early retirement of coal-fired power plants is being developed by the Ministry of Energy and Mineral Resources. The roadmap will serve as a guide to determine which coal-fired power plants will be retired before and after 2030. The preparation of this roadmap is based on criteria outlined in Presidential Regulation No. 112 of 2022 on the Acceleration of Renewable Energy Development for Power Supply.
Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana stated that the program still takes into account economic aspects. The government needs to consider performance, efficiency, productivity, and the age of the power plants in determining which units should be retired earlier.
With challenges such as high financing costs, economic impacts, and the need to maintain electricity supply, the Indonesian government must work with various domestic and international stakeholders to ensure the success of this program.
As one of the countries with significant renewable energy potential, Indonesia has the opportunity to lead the clean energy transition in Southeast Asia. However, to achieve its target of carbon neutrality by 2060, Indonesia needs to make profound and systematic changes in the energy sector, including through the early retirement of coal-fired power plants.
Source: Firman Hidranto (2024), ‘Indonesia Ready to Retire Coal-Fired Power Plants: Challenges and Opportunities for Clean Energy’, Indonesia.go.id, 24 August Available at:
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