At the 29th United Nations Climate Change Conference (COP29), Indonesian delegation head Hashim Djojohadikusumo announced that Indonesia plans to increase renewable energy generation capacity by 75 gigawatts (GW) over the next 15 years to achieve a transformation of its energy structure. Hashim stressed that the plan is part of Indonesia's efforts to reduce global greenhouse gas emissions.
The commitment further complements Indonesia's work on the preparation of its latest climate action document, the Second Nationally Determined Contribution, which is due by March 2025 at the latest. The document will detail the government's latest strategy and commitments to combat climate change, including those related to energy transformation.
While the increase in renewable energy generation capacity may seem positive on the surface, Hashim did not mention the actual challenge facing Indonesia's current energy transformation - the increase in the number of privately operated captive coal-fired power plants. These power plants are mainly owned by nickel smelter operators and are not under the management of national grid operator PT PLN.
According to research by the Center for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM), Indonesia's coal-fired power plant (CFPP) capacity is expected to increase by 7.5 GW, or 15%, between July 2023 and July 2024. About 4.5 GW of this will come from captive plants.
Paradoxically, Indonesia has pledged to advance its energy transition: captive coal power generation has grown by 42%. This significant growth reveals the government's lack of resolve in reducing coal as a major source of electricity. Instead of reducing emissions, coal combustion in captive coal plants has led to an increase in greenhouse gas emissions, exacerbating the global climate crisis.
President Prabowo has pledged to phase out coal plants over the next 15 years, a move that offers a ray of hope for Indonesia, especially if the pledge includes private coal plants. Ember's analysis shows that Prabowo's promise is achievable. By phasing out three gigawatts of coal plant capacity each year, Indonesia could end its coal-fired power generation era by 2040 and switch to renewable energy. At present, the formulation of technical policies has become the key. To achieve Prabowo's promise, the government must formulate a more ambitious policy blueprint to completely end the operation of coal-fired power plants (including private coal-fired power plants), while reducing policy barriers and actively promoting the development of renewable energy in Indonesia.
