Indonesian President Prabowo Subianto announced an ambitious plan to phase out all coal power plants in the country within 15 years as part of efforts to combat global warming. Speaking at the G-20 Summit in Brazil, Prabowo revealed that the government also aims to retire all other fossil fuel power plants and add over 75 gigawatts of renewable energy capacity within the same period.
Prabowo expressed optimism that Indonesia could achieve net-zero emissions by 2040, a decade earlier than its current target. “This is our commitment to addressing climate change and contributing to a sustainable future,” he said in a video statement on Wednesday.
Indonesia faces significant hurdles in meeting these goals, given that coal and natural gas currently account for nearly 80% of its electricity generation. According to BloombergNEF data, the nation had installed less than 1 gigawatt of combined wind and solar power as of last year, underscoring the scale of the challenge.
Prabowo’s announcement signals a shift toward a more aggressive climate strategy. In 2022, Indonesia signed a $20 billion agreement with international funders to accelerate the retirement of coal power plants, although progress has been slow.
As part of its green transition, Indonesia is ramping up biofuel production using palm oil and plans to capitalise on its vast rainforests to generate over 550 million tons of carbon credits. The initiative aligns with the nation’s broader climate goals and its strategy to monetise natural resources for sustainable development.
Prabowo’s pledge, if realised, could mark a transformative step in Indonesia’s energy landscape, reducing its dependence on fossil fuels while positioning it as a leader in renewable energy and carbon offset programmes in Southeast Asia.
