Government deciding to participate in using fiscal financing in an effort to accelerate early retirement of coal-fired power plants (CFPPs) and the construction of new renewable energy (NRE) based power plants

Bisnis.com wrote about the Government deciding to participate in using fiscal financing in an effort to accelerate early retirement of coal-fired power plants (CFPPs) and the construction of new renewable energy (NRE) based power plants. The support from the state revenue and expenditure budget (APBN) will increase the energy transition financing facilities that were previously carried out through financial institutions and other international partnerships. This decision is contained in the Regulation of the Minister of Finance (PMK) of the Republic of Indonesia Number 103 of 2023 concerning the Provision of Fiscal Support through the Funding and Financing Framework in the Context of Accelerating the Energy Transition in the Electricity Sector, stipulated by the Minister of Finance Sri Mulyani on October 4 2023. The funding and fiscal financing framework is hereinafter called the Energy Transition Platform which will be managed by PT SMI (Persero) as the platform manager. Meanwhile, other sources for funding the energy transition refer to funding collaboration with international financial institutions and other bodies. Meanwhile, the CFPPs that can be funded using this platform are assets belonging to PT Perusahaan Listrik Negara (Persero) or PLN, PLN subsidiaries or private business entities.

 

RM.ID wrote about the Government working hard to reduce national GHG emissions. The energy sector is one of the sectors that is encouraged to make a major contribution simultaneously with reducing emissions in the forestry and land (FoLU), industrial and waste sectors. Minister of Environment and Forestry Siti Nurbaya stated that the energy sector is pushing hard to reduce GHG emissions with a strategy to achieve NZE, namely electrification, moratorium on CFPPs, building new energy sources and NRE and implementing energy efficiency. To accelerate emissions reduction in the energy sector, the Government is currently working hard on Energy Transition; and the Government is continuing to seek ways with technological development and investment. From discussions with the Financial sector, an energy transition mechanism is needed for this.

 

CNBCIndonesia.com wrote about the National Energy Council (DEN) highlighting Indonesia's plans to retire domestic Coal-Fired Power Plants (CFPPs) early. This should not cause Indonesia to experience an energy crisis. DEN member, Herman Darnel Ibrahim, said that the government must take into account the details if it wants to retire coal-fired power plants early and ensure replacement energy sources, especially new renewable energy (NRE), whose reliability can be guaranteed. In achieving Indonesia's target of achieving neutral carbon emissions (NZE) by 2060, including by replacing dirty energy sources, in this case coal with NRE, we must first pay attention to energy security in the country. Regarding plans for early retirement for CFPPs, even the domestic electricity company, namely PT PLN (Persero), does not yet know the most reliable energy source to replace CFPPs, especially on the island of Java.