Indonesia plans to cut coal use to 33% of energy mix

The Indonesian Government plans to slash the share of coal-fired power generation in the country’s energy mix to just 33%, while increasing the contribution of renewables to 42% by the end of 2040.

Coordinating Minister for Economic Affairs Airlangga Hartarto made the statement on the sidelines of the Group of 20 (G20) meeting in Rio de Janeiro, Brazil, and added that the country was prepared to add 75 gigawatts of renewables and 70,000 kilometers of new transmission lines to realize the vision.

To achieve this vision, Indonesia will need $235 billion in investment.

Indonesia, home to the world’s fourth-biggest population, is one of the world’s largest thermal coal exporters and carbon emitters.

The Ministry of Energy and Mineral Resources' data showed that renewables accounted for less than 14% last year, while coal contributed more than 40%. The rest of last year’s energy mix came from oil and gas, which accounted for over 30% and 16%, respectively.

Speaking at the Asia-Pacific Economic Cooperation (APEC) High-level Meeting in Lima, Peru, Indonesian President Prabowo Subianto announced that the country was blessed with natural resources and thus can be completely self-sufficient in clean energy.

The commitment to accelerate clean energy use comes as the country has fallen behind its own timeline in its efforts to reduce the carbon footprint of power production.

Last year, Indonesia missed its renewables target for the energy mix, as the share failed to reach the 17.87% deemed necessary to keep the country on track for the 2025 target.

The National Energy Council (DEN) proposed cutting the target for the country’s renewables share in the energy mix to just between 17-19% by the end of 2025 down from the previously envisioned 23%.

Earlier, the ministry and state-owned electricity firm PLN agreed to focus more on controlling emissions from coal-fired power plants, while keeping them up and running until the end of their lifespans, rather than retiring them early to expedite the shift to cleaner energy.