Pollution from the Ombilin PLTU in Sumatra is a threat to the environment and human health. It is being addressed using a bogus energy transition solution.

State funds will be used for energy transition. This is a result of the government’s obsession with building coal-fired power stations.

Indonesia continues to search for cheap funds to finance the coal power plant early retirement program. The energy transition will be hampered if the government only relies on funds from the JETP.

The program to put coal-fired power plants (PLTU) into early retirement is hampered by funding problems. As grants are stuck, the state budget must be disbursed.

The government wants to tighten up emissions checks on vehicles to reduce air pollution. It is a wrong solution.

The government is inconsistent in its implementation of the energy transition program. It grants construction permits for new coal-fired power stations for the sake of investment.

Implementation of co-firing at the Indramayu coal power plant leaves behind environmental impacts and health problems. Co-firing of forest biomass has the potential to cause deforestation and it does not reduce emissions.

The government’s image-building agenda is apparent in the planned acquisition of PLN’s coal-fired power plant by Bukit Asam. There is a certain danger behind the way government runs its energy transition campaign.

Indonesia steps up its target of greenhouse emissions reductions to 31.89 percent through its own resources. Its strategies to achieve this target raise many questions.

The coal supply for steam power plants is depleting. Mining companies refuse to supply them at domestic prices. The fate of coal supply now depends on the government’s assignment scheme.

PLN works hard in dealing with pressures to cease the operation of fossil-fueled power plants. From terminating the new coal-fired steam power plant program to developing the electricity market, an effort to allow new and renewable energy to quickly be adopted.

The implementation of carbon tax collection for steam power plants is delayed again. It waits for the global economic turmoil to pass.

The government is pushing for the use of new and renewable energy in the quest to reach carbon neutral by 2060. Indonesia needs up to Rp15,000 trillion to finance energy transition programs.

Energy and Mineral Resources Minister Arifin Tasrif explains the energy transition program aimed at achieving net zero emissions set out by the Paris Agreement. Indonesia will need at least US$1 trillion for the transition.

Indonesia is ready to begin trading carbon for coal-fired power plants. The regulations still favor the producers of emissions.

Carbon trading is not expected to be effective in achieving the emission reduction target by 2030. The cap is set too high while the tariff is too low to support energy transition.

The government is preparing to form a holding and sub-holdings for PLN. But the plan is yet unclear.

Government reactions are varied on the court verdict handed down in a lawsuit on air pollution. An appeal delays action which should be taken immediately.

PLN is experiencing a surplus of electricity supplies, most of which are purchased from private generators. This is worsening its financial situation.

Coal mining industry is not concerned with the government’s plan to shut down steam power plants. High demand and high prices for coal are the driving factors. This report on the dilemma of the electricity and coal businesses was done with the support of the Judith Neilson Institute.