Ambiguities versus Ambition: A Review of Indonesia’s Energy Transition Policy

With the 11th largest coal reserves in the world, the country is the 3rd largest coal producer globally as well as one of the highest consumers of coal. [...] However, the reduction of GHG emissions in the energy sector by co-firing will not be significant because the portion of biomass is only a fraction of the fuel actually burned, with the remaining 95% still useing coal. [...] This means that more fuel will need to be burned to produce the same amount of output, suggesting that while the emissions per kilowatt-hour of electricity from the plant may decrease, the overall emissions from the plant may not change given that more fuel is needed to get the same amount of power generated at a plant. [...] Factors such as the need to import the fuel and the retrofitting of exiting plants will likely make this technology extremely costly in Indonesia, and is of concern as it could extend the lifetime of CPPs and LNG power plants. [...] Wind and solar deployment should be the priority, over the redeployments and pilot projects of these false Ambiguities versus Ambition: A Review of Indonesiaʼs Energy Transition Policy 25 solution, particularly in the power sector and in part of the energy transition initiatives such as JETP and ETM.