INDONESIA

Indonesia has 57,707 megawatts (MW) of operating coal power, surpassing Japan in 2025 to have the fourth largest capacity globally. The country’s 6,750 MW of coal capacity under construction exceeds all other countries except for China and India. 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 through the first half of 2025 as well.

The country’s September 2022 Enhanced Nationally Determined Contribution (NDC) states that coal’s share of the power sector will decrease between 2025 and 2050, but the new RUPTL document suggests continued increases in coal plant capacity through 2034. 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, and 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 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.