Indonesia plans to phase out coal and fossil fuel plants in 15 years, focusing on renewable energy expansion, says President Subianto.
Indonesian President Prabowo Subianto has announced an ambitious plan to retire all coal and fossil fuel power plants within the next 15 years. Speaking at the Group of 20 summit in Brazil, Subianto shared the government’s strategy to increase the country’s renewable energy capacity while phasing out polluting energy sources.
“Indonesia is rich in geothermal resources, and we plan to phase out coal-fired and all fossil-fuelled power plants within the next 15 years. Our plan includes building over 75 gigawatts of renewable energy capacity during this time,” Subianto said.
The president also expressed optimism about Indonesia achieving net zero carbon emissions by 2050, ten years earlier than the previous target of 2060. “We are committed to renewable and green energy. We are blessed with many resources,” he added.
Experts and environmental activists welcomed the president’s announcement but remained cautious about its implementation. Indonesia is heavily reliant on coal for its energy needs, and transitioning to renewable energy will require overcoming significant challenges.
Currently, Indonesia is one of the largest producers and consumers of coal in the world. More than 250 coal-fired power plants supply most of the country’s energy, and new plants are under construction. These include facilities in industrial parks that process key materials like nickel, cobalt, and aluminum—essential components for global industries like electric vehicles and electronics.
In 2022, Indonesia’s energy sector emitted over 650 million tons of carbon dioxide, ranking as the world’s seventh-largest emitter, according to the International Energy Agency. Experts predict that the country’s energy consumption will triple by 2050 due to population and economic growth, making the energy transition even more critical.
Bhima Yudhistira, executive director of the Indonesia-based Centre of Economic and Law Studies, emphasized the importance of immediate action. “If the government is serious about speeding up the energy transition, efforts to shut down coal-fired power plants and prevent new permits for the construction of coal-fired power plants must be clear so that partners, investors and financial institutions can see the pipeline and progress,” Yudhistira said in a written statement.
This isn’t the first time Indonesia has pledged to reduce its reliance on coal. Under the leadership of Subianto’s predecessor, Joko Widodo, the country committed to several international schemes aimed at cutting coal usage.
One of the most notable efforts was the $20 billion Just Energy Transition Partnership (JETP), the largest deal of its kind. The agreement involves Indonesia working with international stakeholders to phase out coal and invest in renewable energy infrastructure. However, progress on the ground has been slow, and the deal falls short of the trillions of dollars required for a full energy transition.
Experts highlight the need for robust policies and investment to make such transitions successful. Developing the infrastructure needed for renewable energy and retiring existing coal plants early are expensive but necessary steps to achieve the government’s goals.
Indonesia has significant untapped potential for renewable energy. According to the International Renewable Energy Agency, the country has immense resources for solar, hydropower, geothermal, wind, and other renewable energy sources. However, only 14.5% of these resources are currently utilized.
The country’s installed renewable energy capacity is around 13 gigawatts, accounting for less than 15% of total energy generation capacity. To meet the president’s target of building 75 gigawatts of renewable energy, Indonesia will need to scale up its efforts significantly.
“We are committed to renewable and green energy,” Subianto said. “We have other renewable energy sources, and that is why we are very optimistic that we can achieve (net) zero before 2050.”
Despite the optimism, the road ahead is fraught with challenges. Transitioning from coal to renewable energy requires substantial funding, technological advancements, and political will. Experts also point to the need for clear timelines and concrete actions to phase out coal.
Indonesia’s energy policies often face criticism for favoring coal. The country continues to approve new coal plant projects, even as it makes international commitments to reduce emissions. This inconsistency has raised doubts about the feasibility of achieving the goals outlined by Subianto.
Another challenge is the financial burden. While the JETP agreement and other international partnerships have provided some funding, it is far from enough to meet the trillions of dollars required for a complete energy transition.
Moreover, Indonesia’s reliance on coal extends beyond energy production. Coal is a significant contributor to the national economy, providing jobs and revenue. Transitioning away from coal will require careful planning to minimize economic and social disruptions.
The next decade will be crucial for Indonesia’s energy transition. Experts agree that immediate steps are needed to align policies with the president’s vision. These include halting new coal plant approvals, retiring existing plants, and accelerating investment in renewable energy.
Bhima Yudhistira stressed the importance of clarity and action. “If the government wants to attract partners and investors, it must provide clear timelines and demonstrate tangible progress,” he said.
Subianto’s pledge to achieve net zero emissions by 2050 offers a glimmer of hope, but it will require unprecedented effort and coordination. The president’s acknowledgment of Indonesia’s renewable energy potential is a positive sign, but experts caution that words must be backed by actions to make a real impact.
As Indonesia moves forward, the world will be watching closely to see if the country can overcome its dependence on coal and become a leader in renewable energy.