Jakarta – New analysis from EMBER says that Indonesia must reduce coal-fired power generation capacity by 3 gigawatts (GW) each year and simultaneously increase renewable energy capacity by 8 GW per year, to end reliance on coal-based electricity and achieve its carbon emission-free target by 2040.
Dinita Setyawati, Senior Electricity Policy Analyst for Southeast Asia at EMBER, stated that this is a defining moment for Indonesia. “The Indonesian government has a huge opportunity to accelerate the energy transition. With early retirement of coal-fired power plants and massive expansion of renewable energy, we can create a cleaner and more sustainable energy future,” he said in a written statement Friday, December 6.
In its report, EMBER highlighted President Prabowo Subianto’s commitment to phase out coal by 2040, in line with plans to increase renewable energy capacity to 75 GW. The report projects that to meet electricity demand estimated at 806 terawatt-hours (TWh) in 2040, renewable energy should account for up to 65 per cent of total capacity.
“Solar energy will be the backbone of this transition, followed by wind, geothermal, bioenergy and hydro. For this reason, integrating energy storage technologies such as batteries is also a top priority,” Dinita added.
EMBER emphasises the importance of developing up to 4 GW of battery storage per year to support electricity availability, especially at night when peak loads occur. In addition, large investments are needed to build renewable energy infrastructure and improve the connectivity of the national grid.
Overcoming the challenge of retiring power plants
Within the PT PLN (Persero) network, EMBER’s analysis shows that early retirement of coal-fired power plants requires careful planning. According to Rini Sucahyo, Asia Communications Manager at EMBER, the move must be accompanied by fair transition policies for regions whose economies depend on coal. “Retiring power plants is a tough but necessary step. To mitigate the impact, the government needs to strategise economic diversification in areas that depend on coal mining,” Rini said.
By phasing out coal, Indonesia is not only contributing to global efforts to hold the earth’s temperature rise below 1.5 degrees Celsius but also paving the way for greener and more sustainable economic growth.
“As one of the countries with the largest power plant capacity in the world, Indonesia’s success in the energy transition will set a global example. This is a great opportunity to lead the transformation to a low-carbon energy future,” Rini concluded.
EMBER’s analysis confirms that with concrete steps and cross-sector collaboration, Indonesia can pioneer the clean energy revolution in Southeast Asia. Today’s challenges are opportunities to create a better energy legacy for future generations. (Hartatik)
