INDONESIA

Indonesia has 52,317 megawatts (MW) of operating coal power, surpassing South Africa in 2023 to have the fifth largest capacity globally. The country’s 9,815 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 it would stop building new coal-fired power plants after 2023 to meet its carbon-neutral goals; however, new captive coal capacity has continued to be proposed through early 2024. The country’s September 2022 Enhanced Nationally Determined Contribution states that coal’s share of the power sector will decrease between 2025 and 2050. Indonesia’s net-zero commitments by both its Ministry of Energy and Mineral Resources (MEMR) and its state-owned utility, PLN, are an indication of change in a country where preferential permitting of coal in the last decade has led to an over-construction of baseload power, a debt-ridden national utility (PLN), and an extremely carbon-intensive economy. At the same time, new coal-reliant industrial parks being developed with international support run particularly 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 from 25% of the energy mix by 2025 to less than 20% over the same time period.