Indonesia plans to shut down eighteen thermal power plants

Indonesia's intention to close down coal-fired power plants PLTUs in order to achieve the net-zero emissions target by 2060 is enshrined in the Ministerial Regulation of the Ministry of Energy and Mineral Resources (MoEMR) on the Roadmap for Energy Transformation in the Power Sector.Indonesia's Institute for Essential Services Reform (IESR) has endorsed the government's plan to shut down PLTUs, with its executive director stating that the regulation provides a legal basis for power infrastructure development. IESR's study shows that 72 coal-fired PLTUs with a total installed capacity of 43.4 GW need to be phased out in 2022-2045 to mitigate the climate crisis, and 18 PLTUs with a total installed capacity of 9.2 GW are proposed to be shut down in 2025-2030. The IESR study took into account a number of factors, including the age of the plant, installed capacity, project economics, and environmental impacts (especially greenhouse gas emissions). The government is also very concerned about domestic and foreign financial support to advance the closure of coal-fired PLTUs. The cost of early PLTU phase-out is projected to be $4.6 billion by 2030 and $27.5 billion by 2050, with about two-thirds ($18.3 billion) coming from private PLTUs and one-third ($9.2 billion) coming from PLN's PLTUs.While the upfront costs are high, in the long run by 2050, the savings in terms of health cost reductions and PLTU subsidies could be $960 Billions of dollars. Funds are needed to support the early phase-out of inefficient, expensive, and highly air-polluting PLN PLTUs, which, together with state equity capital, should be used to accelerate renewable energy construction and strengthen the grid.