Indonesia is nearing completion of a plan to prematurely retire a 660-megawatt coal power plant, marking a significant step in its shift towards sustainable energy. This initiative was highlighted by Finance Minister Sri Mulyani Indrawati during the Business Session at the Asian Development Bank’s (ADB) 57th Annual Meeting held in Tbilisi, Georgia.
“This 660-megawatt plant retirement is intended as a pilot project for our broader energy transition efforts,” Indrawati explained, addressing the attendees who gathered for the event from May 2-5, 2024. She urged countries and various stakeholders to support Indonesia financially in its massive push from fossil fuels to greener energy sources.
The transition away from coal and other non-renewable resources is fraught with challenges, particularly financial ones, as underscored by Indrawati. Despite these hurdles, Indonesia is resolute in its goal to source 66 percent of its energy from renewable options by 2050. To spearhead this change, the country has created the Energy Transition Mechanism (ETM) platform, with ADB significantly aiding in this initiative.
In recent developments, Indonesia, together with the ADB, has reaffirmed its commitment to accelerating the retirement of such coal-fired power plants under the ETM. One of the significant steps in this direction is the proposed early shutdown of the PLTU Cirebon-1. Initially scheduled to cease operations by July 2042, plans are now in place to shut it down by December 2035.
This agreement, aiming for a quicker transition, was formalized by ADB alongside Indonesia’s state electricity company PT PLN, PT Cirebon Electric Power (CEP), and the Indonesian investment management agency (INA). The deal was inked on the margins of COP28 in Dubai, UAE, in early December 2023. This strategic move not only underscores Indonesia’s commitment to cleaner energy but also sets a precedent for similar initiatives in the region.
