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Indonesia's draft revision of its renewable energy regulation has raised concern that the government is backtracking on its energy transition commitments. Rather than accelerating the shift to clean energy, critics say the revision to Presidential Regulation (Perpres) No. 112/2022 on Accelerating the Development of Renewable Energy for Electricity Procurement would open the door to more coal-fired power plants (CFPPs). The move risks derailing Indonesia's net-zero emissions (NZE) target and reinforces perceptions that the Prabowo Subianto administration prioritizes energy security over transition efforts.
During a recent public consultation on revisions to Presidential Regulation No. 112/2022, the government floated additional exemptions for new coal-fired power plants, framing them as necessary to maintain “system reliability and energy independence.”
The government plans to enter an agreement with Malaysia and Singapore to develop a cross-border data center that will also serve as a buyer of clean power from Indonesia, according to Coordinating Economy Minister Airlangga Hartanto.
