Indonesia Lays Out Energy Transition Plans at WEF 2022

Coordinating Economic Minister Airlangga Hartarto met with World Economic Forum (WEF) President Borge Brende on the first day of the 2022 World Economic Forum Annual Meeting (WEFAM) in Davos, Switzerland, on Sunday. At the meeting, Airlangga revealed Indonesia's plans for climate change mitigation and sustainable energy transition. Indonesia is currently developing a carbon tax prototype that will be imposed on coal-fired power plants before ultimately decommissioning and replacing them with renewable energy power plants (EBT), which are more affordable and sustainable.

Indonesia will also develop a solar power plant (PLTS) with a total installed capacity of 4 gigawatts (GW) in Bintan and plans to export the output to Singapore. The Indonesian government will also exploit hydropower potentials in Kalimantan, capable of generating more than 10 gigawatts of electricity. "Some challenges persist, [such as the fact that] most Indonesians, whose per capita income is around US$4,000 a year, are still unable to buy more expensive energy," Airlangga said in a written statement, quoted on Monday.