The Indonesian Government has announced plans to phase out coal-fired power generation in the country within the next 15 years, effectively establishing the target for 2040. This announcement advances Indonesia’s previous phase out target, originally planned for 2056, by more than 15 years. The new target was stated on the sidelines of the G20 Summit in Rio de Janeiro (Brazil) and confirms plans to build over 75 GW of renewable capacity by 2040.
Earlier in November 2024, the Indonesian Government announced a new US$235bn scheme to develop 100 GW of additional capacity in the country by 2040, which includes 75 GW of non-CO2 emitting capacity, such as geothermal, hydropower, and nuclear energy. In its updated Nationally Determined Contribution (unveiled in 2022), Indonesia increased the country’s unconditional emission reduction target from 29% in 2030 to 31.89% compared to a business as usual (BAU) scenario. Indonesia is still very reliant on fossil fuels, as in 2023, 67% of its power production came from coal, and 18% came from gas, while 12% came from renewables (comprising hydro, wind and solar). The country targets net-zero emissions by 2050.
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