Coal Dependency Holds Back Indonesia's Energy Transition


The National Development Planning (PPN) Ministry stated that Indonesia is facing several issues in transitioning towards a green economy. The ministry's Deputy for Economic Affairs, Amalia Adininggar Widyasanti, revealed that one of the biggest challenges was the country's dependence on coal, making it difficult for Indonesia to switch to renewables. Moreover, the market still believes that coal is still a relatively cheap energy source.

On the other hand, Indonesia's renewable energy potential is actually quite big, even though most of it remains untapped. She elaborated that Indonesia's solar energy potential could reach 207.9 gigawatts (GW), but the installed capacity of solar power plants in the country was only 0.2 GW. Then, the hydropower energy, the potential of which is up to 94.5 GW, but only 6.1 GW has been utilized. In addition, according to research by the Institute for Essential Services Reform (IESR), Indonesia's geothermal energy potential is 29.5 GW, but only 2.3 GW of which has been exploited.

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