Page 8 - AsiaElec Week 38 2022
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AsiaElec                                           COAL                                              AsiaElec

       Indonesia backtracks on





       closure of coal plants













        INDONESIA        INDONESIA is showing an ever increasing  of official policy announced at Glasgow’s COP26,
                         reluctance to close down its aging coal-fired  in 2021, that spotlighted an overall 29% cut in
                         (thermal) power plants (TPPs) in line with  GHG emissions by Jakarta by 2030.
                         assurances made last year towards the nation   Speaking up against the presidential decree,
                         one day achieving net-zero status.   the energy and campaign manager of the Walhi
                           And to add insult to environmental injury,  environmental group in eastern Indonesia said
                         authorities in the capital Jakarta are even giving  there were now “too many exceptions made by
                         the green light on a number of development pro-  the president” and his earlier promises of remov-
                         jects at new coal facilities, albeit in doing so, they  ing TPPs in favour of renewable energy sources.
                         are promising to shut them down by 2060.  “Coal-fired plants are banned, but the fact
                           Indonesia still draws the bulk of its energy  that there are various exceptions indicates that
                         needs from coal, with an estimated 65% of the  the efforts to change the direction in terms of
                         total coming from TPPs.              providing electricity are still half-hearted,” Rere
                           However, despite initial enthusiasm for cen-  Jamboree Christanto said, adding that “in fact,
                         tral government announcements of a move  the longer dependence on fossil energy lasts, the
                         towards renewables dependency, a missive  more burden will be placed on state finances.”
                         issued by the office of President Joko Widodo   Speaking on the same issue, State-owned
                         last week now permits coal-powered steam facil-  Enterprises Minister Erick Thohir highlighted
                         ities “within an industrial area oriented toward  the $600bn that Indonesia is using to move away
                         boosting the value of natural resources.”  from 15 GW of its current coal capacity genera-
                           More vague wording was added within the  tion, in the same process putting in place renew-
                         same missive stating that coal-powered pro-  able capacity of a comparable level.
                         jects contributing in some way to the national   It is widely conceded, though, even within the
                         economy by way of job creation would also be  national government, that the largest economy
                         permitted.                           in the region is struggling to attract backers to
                           There has already been speculation as to  this end, in particular in the form of renewable
                         whether or not this is a direct response to  energy developers.
                         regional analysts claiming that a cut of 20% or   As part of his own efforts to take the sting
                         more in coal use over the next decade would hurt  out of his government’s decision to delay the
                         both nationwide electricity supply as well as the  wind-down of coal use, President Widodo also
                         Indonesian economy.                  ordered government agencies to replace existing
                           One economist at Bandung’s Padjadjaran  motor fleets with electric vehicles by the end of
                         University, Yayan Satyaki, said: “Coal can be  the decade.
                         reduced in the range of 20% to 30% at most by   It is thought this will affect over 130,000 offi-
                         2035, because a reduction of above 20% could  cial vehicles.
                         cause an energy supply gap,”           “To realise the energy transition, the govern-
                           As such, construction of TPPs is now being  ment begins by transitioning from conventional
                         permitted as long as companies behind the  vehicles to electric vehicles,” the president’s
                         facilities agree to a 35% drop in greenhouse gas  Chief of Staff, Moeldoko, said of the presidential
                         (GHG) emissions by the end of the first 10 years  decree.
                         of operations.                         “While other countries are competing to save
                           An alternative is for operators across Indone-  the world from the threat of climate change, we
                         sia, the world’s eighth-worst polluting nation, is  should not only be spectators. We must be the
                         to close the facilities by 2050.     main actors,” he added.™
                           No announcements, official or otherwise,
                         have been made regarding a possible adjustment











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