Plans to change the future of Coal-Fired Power Plants (CFPPs) in Indonesia

ListrikIndonesia.com wrote about the Minister of Energy and Mineral Resources, Arifin Tasrif, revealing the government's plans to change the future of Coal-Fired Power Plants (CFPPs) in Indonesia. According to Arifin Tasrif, the active period of the CFPPs, which was previously scheduled to end in 2054, will be extended. However, there are significant changes accompanied by the government's new strategy. They plan to operate the CFPPs with low-carbon technology to reduce greenhouse gas emissions. In other words, coal will not retire as early as previously thought. This decision is in line with global trends, where many countries, including Indonesia, are trying to switch to more environmentally friendly energy sources. However, this also creates new challenges in the coal industry. It is estimated that major changes in the coal industry in Indonesia will occur in the next 30 years. The government believes that financial assistance from developed countries to implement the early termination of CFPPs operations program is a must. Reducing emissions from the CFPP sector is an interest that must be resolved together. The Indonesian government is trying to face the challenge of climate change and ensure a sustainable energy supply for Indonesia's future.

 

CNBCIndonesia.com wrote about the Ministry of Energy and Mineral Resources which continues to seek financing for a program to stop the operation of a number of coal power plants (CFPPs) sooner than the initial plan, aka early retirement. One of them comes from funding from the Asian Development Bank (ADB). Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that the government does not want the CFPPs early retirement program to actually burden the State Budget. The nature of this program is designed to accelerate the early termination of CFPP operations in order to reduce carbon emissions. The role of the ADB or other institutions is expected to be able to provide loans to pay the 12% interest at a lower interest rate. Thus, if the CFPP operations were originally scheduled to be completed within the next 25 years, then with this program it can be reduced to 20 years. That way, no party is harmed.