Jakarta—The non-profit organisation CERAH said the long-awaited regulation of the national energy transition road map, which sets the direction of the national energy transition, instead raises more questions about the government’s commitment to efforts to abandon coal-fired steam power plants (PLTU).
Policy Strategist from energy research institute CERAH, Sartika Nur Shalati, called this policy a positive first step, but not enough to answer the urgency of the energy transition. “This Permen (ministerial regulation) is indeed a progress, but ironically, there are no details about which PLTUs will be retired or the total capacity targeted. Many studies about it are already available,” Sartika said in her statement, Tuesday, 22 April.
Minister of Energy and Mineral Resources Regulation No. 10 of 2025 on the Roadmap for Energy Transition in the Electricity Sector, promulgated last week, provides a legal basis for measures to decarbonise the power sector.
However, observers say it does not provide a firm roadmap for the early retirement of power plants, a crucial step in reducing Indonesia’s carbon emissions.
This regulation contains a number of evaluation criteria before a PLTU can be shut down, ranging from the plant’s age and capacity, emissions, and utilisation to economic and social aspects. However, because all decisions are “conditional,” there is no guarantee that the early retirement process will run quickly and decisively.
This policy is also considered out of line with Indonesia’s pledges in global forums. In his speech at the G20 Summit in November 2024, President Prabowo Subianto committed to phasing out coal-fired power plants by 2040. However, the Permen of ESDM instead adopts a phase-down approach without specifying a clear deadline.
Study feared to be a delaying tool
Wicaksono Gitawan, CERAH Policy Analyst, highlighted the technical weaknesses in this regulation. According to him, there is no clarity on the follow-up mechanism if the study for early retirement of PLTU is delayed from the set six-month deadline. “This can open up space for delays that derail the whole process. Especially if there are no sanctions or follow-up scenarios that are regulated,” said Wicaksono.
He also assessed that the “Equitable Energy Transition” aspect raised in Article 11 was only a policy decoration, without adequate elaboration on its implementation.
The policy has also been criticised for opening up an ample space for coal-based “transition” technologies, such as co-firing (co-combustion of biomass, ammonia or hydrogen) and carbon capture (CCS). According to Wicaksono, these measures maintain dependence on coal and only create “false solutions”.
“PLTU with CCS still produces carbon. Globally, CCS technology has also proven to be inefficient and has not succeeded in absorbing carbon optimally,” he said.
High production cost could affect affordability
In addition to its questionable effectiveness, the use of technologies such as CCS and nuclear reactors in this roadmap is also considered to have the potential to burden state finances and society.
According to Sartika, nuclear waste management, for example, could cost Rp2.2 billion and Rp1.3 trillion, depending on the storage method. Meanwhile, installing CCS on all 54.7 GW of power plants could increase production costs by USD17 billion or around Rp283 trillion annually.
“This is contrary to considering the impact on electricity tariffs. It can increase the cost of supplying electricity (BPP),” said Sartika.
In fact, according to a study by the Institute for Essential Services Reform (IESR), the cost of production (LCOE) from renewable energy such as solar panels is already much cheaper, around USD 4.1-10.1 per kWh, compared to PLTU, which ranges from USD 4.5-11.9 per kWh, not including CCS costs.
“If we already know clean energy is cheaper, why are we still struggling with coal?” asked Wicaksono rhetorically.
Observers emphasise that the roadmap must be immediately strengthened with a list of power plants to be retired, a clear timetable, and an inclusive and fair energy transition framework.
“If this roadmap is left hanging without concrete targets, Indonesia will struggle to fulfil its climate commitments. Worse, we could be trapped in a deeper climate crisis by compromising with coal for too long,” Wicaksono concluded. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
