INDONESIA

Indonesia has 60,705 megawatts (MW) of operating coal power, surpassing Japan in 2025 to have the fourth largest capacity globally. The country’s 3,140 MW of coal capacity under construction is also the fourth largest globally. Proposed new coal mining capacity in Southeast Asia continues to be dominated by Indonesia. In 2021, the Indonesian government said that it would stop building new coal-fired power plants after 2023 to meet its carbon neutrality goals; however, the country's newest electricity supply plan (RUPTL 2025-2034), released in May 2025, includes several new and revived on-grid coal plants. Significant off-grid (captive) coal capacity for industrial use continued to be proposed throughout 2025 as well.

Indonesia's Second Nationally Determined Contribution (NDC), submitted in October 2025, sets a target of reaching peak greenhouse gas emissions in 2030 and limiting emissions to 1.26-1.49 Mt CO2eq by 2035. Indonesia also committed to generate at least 23% of its energy from renewable energy by 2030 and at least 72% in 2060. The country’s prior NDC stated that coal’s share of the power sector would decrease between 2025 and 2050, but the new RUPTL document suggests continued increases in coal plant capacity through 2034.

In January 2024, the Indonesian government planned to lessen its renewable energy target, and the May 2025 RUPTL document did decrease renewable energy targets compared to the previous electricity supply plan. Preferential permitting of coal over the last decade has led to an over-construction of baseload power, a debt-ridden national utility (PLN), and a carbon-intensive economy. New coal-reliant industrial parks being developed with international support run counter to existing pledges.

Indonesia's Just Energy Transition Partnership (JETP) agreement has not yet addressed the impact of captive coal plants, and the JETP's first investment plan contains minimal financing for the decommissioning of operating coal plants. In December 2025, PLN announced the cancellation of a planned early retirement scheme between the Asian Development Bank and an Independent Power Producer and hinted that a "phase down" of coal would be pursued rather than a "phaseout".