Indonesia’s Coal Phase-Down Strategy to Accelerate Decarbonisation Efforts

Indonesia’s Coal Phase-Down Strategy to Accelerate Decarbonisation Efforts

Indonesia has initiated a coal phase-down strategy as part of its broader efforts to accelerate decarbonisation. The plan aims to gradually reduce coal usage while expanding renewable energy sources.

According to PT PLN, Indonesia’s state-owned electricity company, the country will continue building power plants until 2040, targeting a total capacity of around 88.4 gigawatts. Of this capacity, 75% will be derived from renewable energy sources, while the remaining 25% will be gas-based.

“We will not simply close down the coal-fired power plants, but rather gradually phase down the use of coal and replace them with new and renewable energy,” stated Suroso Isnandar, Risk Management Director of PT PLN. He highlighted this strategy as essential in reducing emissions within the electricity sector and achieving a zero-emission target by 2060.

Isnandar emphasized that the coal phase-down approach aligns with Indonesia’s