Indonesia is the world's largest coal exporter. However, the country has just updated its goal for phasing out coal power. Originally planned for 2056, President Prabowo Subianto announced at a recent G20 forum that Indonesia plans to retire all of the country’s fossil fuel power plants within the next 15 years. Additionally, the Indonesian envoy to COP29 declared the country’s intention to increase renewable energy capacity by over 75 gigawatts within the next 15 years, focusing on solar, geothermal, hydro, and wind power. Until now, progress in Indonesia had been limited. The country operates over 250 coal-fired power plants, with 40 new plants under construction. Only 15% of the total installed power capacity currently comes from renewable sources, while coal accounts for about 70% of the electricity mix. The phase out of coal has been restrained by political and financial constraints, despite the introduction of a carbon tax and other measures.
In addition to the ongoing significance of coal and the slow expansion of renewable energies, deforestation remains a critical issue in Indonesia. The country is home to the world's third-largest tropical forest area and faces major environmental challenges due to accelerated urbanization, population growth, and agricultural expansion, particularly for palm oil. Effective measures against deforestation could significantly reduce national emissions, but governmental commitment remains inconsistent.
At the national level, Indonesia's legal climate policy framework is quite comprehensive. Although there is no specific climate law, climate-related measures are embedded in various laws, regulations, strategic plans, and action programs. However, at the subnational level, climate policy measures are rather sparse. The national government must ensure that its climate policy directives are effectively implemented at the local level – this includes translating international principles and duties into an understandable, local language.
Indonesia's path to climate neutrality requires a comprehensive approach that addresses coal dependency, effectively combats deforestation, and leverages international cooperation.
