中文
Indonesia's state-owned utility PLN has acknowledged receiving international pressure to expedite the retirement of coal-fired power plants in the country.
Darmawan Prasodjo, President Director of PLN, revealed that there is significant pressure to retire coal fleets ahead of schedule. He expressed willingness to discuss the matter, urging those in favor of early coal retirement to come forward and offer reimbursement for retired assets prior to 2030.
Prasodjo emphasized that the early retirement of coal-fired power plants would have positive implications for Indonesia, as well as global benefits.
He referred to the Just Energy Transition Partnership (JETP) program, which has committed to funding approximately $20 billion for this purpose, led by the United States and Japan. He urged stakeholders to consider the value of these assets and replace them with cash. The topic of early coal retirement is also being discussed within the G20 framework.
Furthermore, Prasodjo stressed the importance of accurately calculating asset turnover. If a generator is valued at Rp. 10 trillion ($663 million), PLN would request a replacement with an equivalent monetary value. This would enable PLN to invest in new renewable energy projects. He expressed gratitude that PLN was not at a disadvantage with regard to the agreement.
Regarding the JETP fund for early retirement, Prasodjo mentioned that negotiations are still ongoing, and PLN is awaiting the outcome. Previously, PLN had announced its readiness to accelerate 522 green projects through collaboration under the JETP scheme.
This represents a significant increase from the current 163 green projects that PLN independently operates as part of its energy transition efforts to achieve the Net-Zero Emissions target by 2060.
Currently, PLN is consolidating all green programs that have yet to receive funding to be included in the Climate Investment Partnership Platform within the JETP scheme.
In a separate report by Reuters on July 12, Indonesia will push for the G20 countries to recognize lending for early retirement of coal power plants as sustainable investment.
Coal makes up more than half of Indonesia's power generation. PLN has set a target to phase out coal power plants by 2056, as part of the country's goal to reach net zero carbon emission by 2060.
(Writing by Alex Guo Editing by Emma Yang)
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