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Indonesia’s climate foresight hits home
The question now is when Indonesia will be ready to phase out coal-fired power generation.
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The five chimney stacks of the 4,025 MW Suralaya coal-fired power plant, one of the largest of its kind in Indonesia, towers above Cilegon city in Banten province on Sept. 24, 2019. (JP/Norman Harsono)
W
hen President Joko “Jokowi” Widodo spoke at United States President Joe Biden’s Climate Leadership Summit in April, he made three key comments consistent with other coal producing and consuming nations, and the direction of the World Coal Association.
Firstly, he underscored Indonesia’s commitment to tackling climate change as an issue which is in the “national interest”. Secondly, he invited global leaders to support developing countries in realizing their climate ambitions in a “credible way”. Thirdly, he said the Paris Agreement partnership had to be “strengthened” around a better understanding of the strategies which can accelerate net zero emissions.
He also highlighted Indonesia’s openness to investment and technology transfer, including investment for the energy transition. Last month, Indonesia announced a moratorium on any new coal-fired power plants allowing completion of plants under construction or reaching their financial closure.
Furthermore, it signaled a hardline end of coal generation by 2060 when carbon neutrality is hoped to have been achieved. But while coal’s percentage share in the country’s fuel mix is expected to fall in the future, the actual volume consumed is expected to increase future demand from higher electrification and economic growth.
These developments demonstrate how complex and fluid the climate change environment is. Coupled with Indonesia’s Finance Ministry proposing the possibility of creating a carbon tax regime, it is even more relevant that clean coal technologies need to be considered as part of the solutions to address carbon neutrality.
The question now is when Indonesia will be ready to phase out coal-fired power generation. Answering this question is rather complex because it requires an assessment of cost and value – two very different things.
The cost of coal is evaluated on environmental terms alone – CO2 emissions. But the value of coal is predicated on the investment made and its enabling role in driving economic growth – employment, infrastructure, affordability reliable power, and its contribution to energy security.
