Indonesia, a country heavily reliant on coal for electricity, has announced plans to tender up to 75 gigawatts (GW) of renewable energy capacity over the next 15 years. This is part of the Southeast Asian nation’s effort to diversify its energy mix and address climate change.
Hashim Djojohadikusumo, Indonesia’s climate envoy at the COP29 summit in Baku, Azerbaijan, shared the country’s ambitious energy goals. He revealed that Indonesia plans to implement 100 GW of new energy capacity under the new administration, with 75% of that—around 75 GW—coming from renewable sources.
As of now, Indonesia’s total installed power capacity exceeds 90 GW, but coal still dominates the energy mix, accounting for a significant portion. Renewable energy, by contrast, makes up less than 15% of the country’s total capacity.
In 2022, Indonesia, the world’s largest coal exporter, made a major step toward transitioning to cleaner energy by signing a Just Energy Transition Partnership (JETP) agreement. The partnership, co-led by the U.S. and Japan, also includes countries such as Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom. The goal of this initiative is to help Indonesia peak its power sector emissions by 2030.
The partnership aims to mobilize $20 billion in financing over the next three to five years, which will come from a mix of public and private sources, including grants, concessional loans, and market-rate loans. The funds are intended to help Indonesia shift from coal to cleaner energy alternatives.
Under the JETP agreement, Indonesia has set a target for renewable energy to account for at least 34% of its total power generation by 2030. This represents a significant increase in renewables compared to current plans, effectively doubling the country’s renewable energy capacity over the next decade.
However, Indonesia has yet to receive a large portion of the promised $20 billion in funding, which it needs to transition away from coal. A government official noted in September that the country is still waiting for these crucial funds.
Despite these efforts, Indonesia’s reliance on coal has actually increased in recent years. In 2023, coal accounted for a record 61.8% of the country’s power generation, according to data from clean energy think tank Ember. This places Indonesia and the Philippines ahead of Poland and China in terms of coal dependency.
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