Indonesian Political, Business & Finance News

Energy Ministry: Early retirement of coal-fired power plants to be phased

| Source: ANTARA_ID Translated from Indonesian | Energy
Energy Ministry: Early retirement of coal-fired power plants to be phased
Image: ANTARA_ID

The early retirement programme for coal-fired power plants (PLTU) will be carried out in stages, taking into account the readiness of replacement energy and the continuity of industry, according to Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung.

“This is gradual, because the locations are not only on Java. There are some in Sumatra, in several industrial areas. Of course we also take into account the continuity of industry,” Yuliot said when met at the Indonesia Sustainable Energy Week (ISEW) 2026 event in Jakarta on Wednesday.

He said there are 15 power plants that fall into the category of having relatively high emissions. However, the early retirement of PLTUs cannot be carried out all at once because it is necessary to take into account national energy and industrial needs.

“So for early retirement, we are looking at these high-emission power plants. For the high-emission power plants, we have also carried out an evaluation,” Yuliot said.

According to Yuliot, the government is also calculating the need for replacement energy if the PLTUs are decommissioned. One option is through the utilisation of new and renewable energy (EBT), including support from the programme to accelerate the development of 100 gigawatts of renewable energy power plants.

“We are calculating the replacement energy. So later, from renewable energy, whether part of it can be replaced from the 100 gigawatt acceleration programme for its absorption,” he explained.

He added that if the acceleration and funding support are in place, the government is targeting the energy transition commitment for 2030-2035 to be realised.

“We are targeting that, in accordance with our commitment, 2030-2035 can be implemented,” Yuliot said.

Previously, the Ministry of Energy and Mineral Resources (ESDM) identified 15 high-emission coal-fired power plants (PLTU), but is still reviewing the mechanism for the early retirement of these power plants.

The Ministry of ESDM also highlighted the importance of considering the capacity of power generation from renewable energy in replacing the lost capacity if the government carries out early retirement of operating PLTUs.

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