CSIS: Investors Not Interested in Funding Coal Plant Early Retirement

By Editorial Team 23/08/2023
Summary

Centre for Strategic and International Studies (CSIS) and Tenggara Strategics assessed that the early retirement program for coal-fired power plants (PLTU) lacks appeal for foreign investors.

"The primary issue with the early retirement program for coal-fired power plants is its financing," Tenggara Strategics Executive Director Riyadi Suparno said on Tuesday.

According to documents collected by CSIS and Tenggara Strategics, the early retirement of PLTU falls into the red category within the banking financing classification.

Riyadi revealed that even though the program's objective is to accelerate achieving net zero emissions (NZE) in Indonesia by 2060 or earlier by discontinuing PLTU operations sooner, global investors are hesitant to incorporate fossil fuel-based assets into their investment portfolios.

This reluctance arises from concerns about potential reputational harm among stakeholders.

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