Indonesia’s Coal Expansion Threatens Emissions Pledge, Report Warns
JAKARTA, Feb 20 — Indonesia’s plan to expand coal-fired power plants for industrial use is undermining its commitment to cut carbon emissions by 2030 and phase out coal entirely by 2040, according to a report released today.
Despite pledging a rapid transition to clean energy, Southeast Asia’s largest economy continues to rely heavily on coal. Last year, President Prabowo Subianto reaffirmed Indonesia’s goal to achieve net-zero emissions by mid-century. However, a new national electricity master plan, announced in November, suggests the country is heading in the opposite direction.
The report by London-based energy think tank Ember highlights that while Indonesia’s plan projects an increase in renewable energy, it also foresees a sharp rise in coal power generation beyond 2030. This contradicts earlier commitments, raising concerns about the country’s ability to meet its climate targets.
Captive Coal Expansion Raises Alarm
One of the biggest concerns is the planned addition of 26.8 gigawatts (GW) of new coal capacity over the next seven years, with over 20 GW dedicated to “captive coal”—plants that supply power directly to industries rather than the national grid.
Indonesia currently operates 49.7 GW of coal-fired power plants, and the government reported 253 operational coal plants as of December. However, dozens more are under construction, including captive coal plants designed to fuel industrial growth.
State-owned electricity provider Perusahaan Listrik Negara (PLN) has not responded to requests for comment.
Economic and Environmental Concerns
Experts argue that prioritizing coal expansion while global markets shift toward cleaner energy is a costly mistake.
“Expanding captive coal while the world moves toward renewables makes little economic sense,” said Dody Setiawan, Ember’s senior climate and energy analyst for Indonesia. “A clear commitment to phasing out coal and accelerating renewable energy development is the smarter path forward.”
The Centre for Research on Energy and Clean Air (CREA) has also warned of severe consequences for communities near new coal developments, particularly on the islands of Sulawesi and North Maluku.
“Local residents will bear the highest health and economic costs due to pollution exposure,” said CREA analyst Katherine Hasan.
Delays in Green Energy Funding
Indonesia’s clean energy transition was expected to receive a boost from the $20 billion Just Energy Transition Partnership (JETP), a deal struck with developed nations in 2022. However, progress has been slow, and much of the promised funding remains unseen.
Adding to the uncertainty, Indonesia’s climate policy came under scrutiny this month when the environment ministry had to reaffirm its commitment to the Paris Agreement. This followed controversial remarks by the country’s climate envoy, who suggested the landmark deal had lost relevance after the U.S. under President Donald Trump withdrew from it.
Urgent Need for Action
With mounting pressure from climate advocates and international partners, the report concludes that Indonesia must take stronger action to align with the Paris Agreement’s 2050 targets. Expanding coal power, rather than phasing it out, risks not only environmental damage but also economic setbacks as the world increasingly shifts toward renewable energy.
— AFP