Indonesia aims to cut coal use to one-third of energy mix

Indonesia plans to slash the share of coal-fired power generation in the country's energy mix to 33 percent, while increasing the contribution of renewables to 42 percent by the end of 2040.

Indonesia's coordinating minister for economic affairs, Airlangga Hartarto, made the statement on the sidelines of the G20 meeting in Rio de Janeiro on Nov 20, adding that the country was prepared to add 75 gigawatts of renewables and 70,000 kilometers of new transmission lines to realize the vision.

"To achieve this vision, Indonesia will need $235 billion in investment," Airlangga said in a statement. Indonesia is one of the world's largest thermal coal exporters and carbon emitters. According to the International Energy Agency, the country is the fourth-largest coal producer and one of the world's biggest coal exporters.

The green objective, if achieved, would mark a jump in the country's energy transition, with Energy and Mineral Resources Ministry data showing that renewables accounted for less than 14 percent last year, while coal contributed more than 40 percent.

The rest of last year's energy mix came from oil and gas, which accounted for over 30 percent and 16 percent, respectively.

Indonesian President Prabowo Subianto recently said that Indonesia was one of the few countries that could meet its entire energy needs without relying on fossil fuels.

He told leaders at the Asia-Pacific Economic Cooperation meeting in Lima on Nov 14 that the country was blessed with natural resources and thus could be completely self-sufficient in clean energy.

The commitment to accelerate clean energy use comes as the country has fallen behind its own timeline in its efforts to reduce the carbon footprint of power production.

Last year, Indonesia missed its renewables target for the energy mix as the share failed to reach the 17.87 percent deemed necessary to keep the country on track for the 2025 target.

Indonesia's national energy council has proposed cutting the target for the country's renewables share in the energy mix to just between 17 and 19 percent by the end of 2025, down from the previously envisioned 23 percent. Energy authorities said in January that Indonesia would need to be realistic.

In November last year, the government and state-owned electricity firm PLN agreed to focus more on controlling emissions from coal-fired power plants, while keeping them up and running until the end of their lifespans, rather than retiring them early to expedite the shift to cleaner energy.