The Politics of Energy Transition: Broken Promise and Forgotten Pledge
Summary
- With all the ambitious targets and pledges to reduce emissions, the National Energy Council’s draft revision of the National Energy Policy, submitted to the DPR, plans to discard the original renewable energy mix target of 23 percent and lower it to between 17 and 19 percent by 2025.
- The Indonesian government also broke its promise concerning the early retirement of coal-fired power plants (PLTU). They prefer the scenario to allow coal power plants to continue operating until their electricity purchase agreements with PLN expire.
- It is not an exaggeration to say that the main problem in energy transition is PLN. The reduction of renewable energy targets, the cancellation of coal-fired power plant shutdowns, and the weakening of solar power regulations aim to maintain PLN’s financial balance and ensure that electricity tariffs remain affordable.