Indonesia's Renewable Energy Regulation Revision Raises Concerns About Coal-Fired Power Plants

Background and Current Developments

The Indonesian government is currently revising Presidential Regulation (Perpres) No. 112/2022, which focuses on accelerating the development of renewable energy for electricity supply. The draft revision has sparked intense debate as it potentially opens the door for new coal-fired power plants (PLTU batubara). The government maintains that the changes are necessary to ensure system reliability and meet national electricity demands.

Government's Position on Renewable Energy Expansion

Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, clarified that the revision aims to expand the utilization of new and renewable energy (EBT). He highlighted that the current realization of EBT in the electricity mix stands at only 16%, significantly short of the national target. Yuliot emphasized that the revision is not intended to relax the rules for new coal-fired power plants.

Specific Provisions and Plans

According to Yuliot Tanjung, existing planned coal-fired power plants will continue as scheduled, while those with high greenhouse gas emissions are being considered for early retirement. The revised regulation also includes provisions for hybrid power plants (PLT hibrida), particularly for the dedieselization program in remote areas (3T regions - Tertinggal, Terluar, Terpencil).

Implications and Future Directions

The government's balancing act between maintaining energy reliability and promoting renewable energy development continues to be a complex challenge. While the current draft revision has raised concerns among environmental stakeholders, it also highlights the ongoing efforts to modernize Indonesia's energy infrastructure and address regional energy needs.