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PLN cancels 1 GW coal plant in move toward net zero

The electricity company has pulled the plug on its coal-fired power plant project in Indramayu, West Java, as the government struggles to make good on its emissions pledge.

Divya Karyza (The Jakarta Post)
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Jakarta
Tue, June 28, 2022

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PLN cancels 1 GW coal plant in move toward net zero Smokestacks at the Suralaya coal-fired power plant belch fumes into the skies above Cilegon, Banten, on Sept. 21, 2018. International pressure to accelerate decarbonization may force Indonesia’s hand in transitioning from coal. (AFP/-)

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tate-owned electricity company PLN has axed a project to develop a coal-fired power plant as the country chases its long-delayed commitments to cut carbon dioxide emissions.

PLN vice president of corporate communications Gregorius Adi Trianto confirmed that the company had canceled its plans to build a 1-gigawatt (GW) plant in Indramayu, West Java.

“PLN took the initiative to stop borrowing [funds for the project] as part of PLN's efforts to reach [our] carbon neutral goal by 2060,” Gregorius said on Friday in a reply by text message to The Jakarta Post.

The project’s termination came after Japan announced that it had canceled a plan to provide a loan worth 1.7 billion yen (US$12.55 million) for developing the Indramayu plant amid growing international criticism of coal power plants, a major source of greenhouse gas emissions.

Read also: Coal power projects in doubt as Chinese funding dries up

“We have decided not to proceed with these [projects] as the subject of yen loans,” press secretary Hikariko Ono of Japan’s foreign ministry told a press conference on Thursday, as quoted by Nikkei Asia.

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The Group of Seven (G7) countries agreed in 2021 to end new forms of aid for coal-fired power plants that failed to take measures to curb emissions.

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