- Indonesia plans to tender 75 gigawatts of renewable energy capacity over the next 15 years to transition away from coal.
- Despite commitments under the Just Energy Transition Partnership, Indonesia’s coal dependency reached 61.8% of power generation in 2023.
Indonesia, the world’s top coal exporter, is set to tender up to 75 gigawatts (GW) of renewable energy capacity over the next 15 years as part of its commitment to transition away from coal-based power generation. Hashim Djojohadikusumo, Indonesia’s climate envoy at the COP29 summit in Baku, announced that the country’s new administration plans to implement 100 GW of new energy capacity by 2038, with 75 GW, or 75%, coming from renewable sources.
Indonesia’s power capacity currently exceeds 90 GW, with coal accounting for the majority and renewables contributing less than 15%. In 2022, the country signed a Just Energy Transition Partnership (JETP) with the US, Japan, and several European nations to reduce its dependence on coal. Under this partnership, Indonesia has committed to ensuring renewable energy accounts for 34% of its power generation by 2030 an ambitious goal requiring doubling the current pace of renewable energy adoption.
However, Indonesia is still awaiting a significant portion of the $20 billion in financing promised by wealthier nations to help fund its energy transition. Despite this, the country’s reliance on coal has increased, reaching a record 61.8% of its electricity generation in 2023, according to clean energy think tank Ember. This has led to Indonesia and the Philippines surpassing China and Poland in coal dependency.
The government has acknowledged the challenge of meeting renewable energy targets amidst its coal reliance and has called for more support from international partners to accelerate the transition. While Indonesia aims to reduce its carbon emissions and diversify its energy mix, it faces the dual challenge of balancing economic growth driven by fossil fuels with its climate commitments. The outcome of this energy transition will significantly impact Indonesia’s future energy security and role in global climate efforts.