Government planning to stop the operations of two Coal-Fired Power Plants (CFPPs) sooner than originally planned

CNBCIndonesia.com wrote about the Government planning to stop the operations of two Coal-Fired Power Plants (CFPPs) sooner than originally planned. Among them are Pelabuhan Ratu CFPP and Cirebon-1 CFPP. Deputy Chairman of Commission VII DPR RI (Indonesia Parliament), Eddy Soeparno, explained that at least to realize the cessation of operations of the two CFPPs, the funds needed reached IDR 25 trillion. In detail, the Pelabuhan Ratu CFPP is IDR 12 trillion and the Cirebon-1 CFPP is IDR 13 trillion. However, the use of APBN (State Budget) funds is considered not strong enough to cover early retirement, therefore there is a need for other funding sources that can be used to support the CFPP’s early retirement program. For example, funding through the Just Energy Transition Partnership (JETP) scheme and support from the Asian Development Bank (ADB).

 

Kontan.co.id wrote about the Just Energy Transition Partnership (JETP) Secretariat which will pursue the completion of a comprehensive investment and policy plan (CIPP) document before the Conference of the Parties 28 (COP-28) in Dubai, United Emirates Arabia at the end of November. Director of Communications JETP Secretariat, Adhityani Putri, stated that her party had entered the final or final stage of the process of finalizing JETP's comprehensive investment planning and policy documents. In the midst of the ongoing CIPP JETP process, the Indonesian government continues to lobby developed countries that are members of the IPG to channel some of their money into early retirement projects for coal plants in Indonesia. On the other hand, developed countries that are members of the International Partners Group (IPG) are reluctant to fund the CFPP’s early retirement program. In fact, it is hoped that JETP can be a catalyst that can encourage Indonesia to carry out an early retirement program. The Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Yudo Dwinanda, stated that the set fund of US$ 20 billion is equivalent to IDR 314 trillion (exchange rate of IDR 15,700/USD) for the energy transition process is not simple until now the coal plant retirement program is in the funding JETP is still being discussed.

 

WartaEkonomi wrote about the Secretary of the Directorate General of Electricity, Ida Nuryatin Finahari, who said that achieving national energy security is a top priority for all countries, including Indonesia. The energy transition challenge is an important focus in order to overcome global climate change. The Indonesian government has committed to reducing GHG emissions as outlined in the Nationally Determined Contribution (NDC) and continues to reinforce its commitment conveyed at COP 26 to contribute to accelerating the realization of global Net-Zero Emissions, and also at COP 27 through Enhanced NDC 2030 with increased targets from the energy sector to 358 million tons of CO2e from 29% to 31.89% with its own capabilities, and from 41% to 43.20% with international support. This is in line with the commitment at the G20 meeting in Indonesia in 2022 to achieve Net Zero Emissions (NZE) by 2060 as outlined in the Bali Compact and Bali Roadmap which are used as a guide in carrying out the energy transition to achieve stability, transparency and affordability of the energy market. To carry out this commitment, the Indonesian Government is optimizing the supply of electricity from New Energy and Renewable Energy (EBET) sources, as well as regulating demand by implementing energy efficiency.