Indonesia, ADB, owners agree to shutter first coal-fired power station early

Indonesia and the Asian Development Bank have agreed a provisional deal with the owners of the Cirebon-1 coal-fired power plant to shutter it almost seven years earlier than planned, a principal energy specialist for climate change at the ADB told Reuters. 

The deal, announced during the COP28 climate talks in Dubai on Sunday, is the first under the ADB's Energy Transition Mechanism (ETM) program, which aims to help countries cut their climate-damaging carbon emissions. 

Supporting a $20 billion Just Energy Transition Partnership agreed last year that aims to bring forward the sector's peak emissions date to 2030, the ADB hopes to replicate it across other countries in the region. 

"If we don't address these coal plants, we're not going to meet our climate goals," David Elzinga, ETM team leader, said on the sidelines of the conference. 

"By doing this pilot transaction, we are learning what it takes to make this happen," Elzinga said. "We're very much shaping this as something we want to take to other countries." 

ADB also has active ETM programs in Kazakhstan, Pakistan, the Philippines, and Vietnam, and is considering transactions in two other countries, it said. 

Under the non-binding framework deal, signed by ADB, Indonesian state-owned power utility company PT PLN, independent power producer PT Cirebon Electric Power (CEP) and the Indonesia Investment Authority (INA), a power purchase agreement for the 660 megawatt plant - a key supplier to the capital Jakarta - will be ended in December 2035 instead of a planned date of July 2042. 

As it only opened in 2012, the plant, operated by CEP, could have been expected to run for 40 or more years, so retiring it in 2035 would avoid over 15 years of greenhouse gas emissions from the site, the ADB said. 

The deal is subject to due diligence, including assessing its impact on the environment, the company's workers and society more broadly, and the broader electricity system, but is expected to close in the first half of 2024. 

Source: Reuters 

China’s CATL to start building EV battery plant in January 

 
China’s Contemporary Amperex Technology Co. (CATL) is set to start construction on an electric vehicle (EV) battery plant in Indonesia in January, the government has said.  

Speaking to reporters on the sidelines of the 2023 National Investment Coordinating Meeting (Rakornas) on Wednesday, Investment Minister Bahlil Lahadalia said his visit to China in late November had sought to “ensure investment in Indonesia’s EV battery ecosystem”.  

That included CATL, he said, which he expected to break ground on its factory early next year.  

Yuliot, an undersecretary at the ministry, told The Jakarta Post on Wednesday that the plant would be located in East Halmahera, North Maluku, and that state-owned nickel and gold miner Antam would be in charge of preparing the groundwork for the industrial area.  

He added that Antam would participate in the project through PT Feni Haltim, a subsidiary specializing in ferronickel production in the region. 

Last week, Antam business development director I Dewa Bagus Wirantaya announced that the company would sign a joint venture agreement with CATL on Dec. 10.  

The two firms were finalizing the prerequisites for the agreement, he said, including the divestiture of Antam's nickel ore mining arm PT Sumber Daya Arindo (SDA) and cooperative initiatives in upstream and downstream production.  

The move was part of a larger plan to build an end-to-end domestic supply chain for EV batteries in Indonesia, to which the government had committed multiple joint ventures, spearheaded by state-owned PT Indonesia Battery Holding (IBC).  

The state-run EV battery holding company had also signed a framework agreement with South Korea’s LG Energy Solution, Bahlil said. LG would start production in February or March of next year, he added, without providing further details.  

Speaking separately, Yuliot said Chinese glass manufacturer Xinyi remained committed to its US$11.5 billion investment in Rempang despite a construction delay resulting from some residents refusing to move away from the future glass manufacturing site.  

“Xinyi remains committed to investing in [Rempang] so far,” said Yuliot on the sideline of Rakornas. 

Bahlil said that of the 800 to 900 people who lived on the planned site of the factory, 100 had been relocated and 380 others had declared their willingness to move.  

The government had expected to start clearing the land on Sept. 28 but missed the target and had opted for what it called a softer approach to evicting residents.  

It had arrived at the decision after authorities made headlines for using physical force against locals protesting their eviction.  

Despite its push for EV adoption, Indonesia is lacking battery production capacity.  

The Energy and Mineral Resources Ministry asked in late November for the support of lawmakers to convince the Industry Ministry to rethink a policy that would require a large portion of EV components to be produced locally, as Indonesian manufacturers would be unable to provide the necessary parts.  

Meanwhile, IBC has said Indonesia’s battery industry is struggling with a lack of regulation and an unclear road map, which it says could hamper the country’s EV development. 

Source: The Jakarta Post 

Minister proposes free entry visas for travelers from 20 countries

The Ministry of Tourism and Creative Economy has proposed issuing free entry visas to travelers from 20 countries as an effort to push up tourist visits and bring a multiplier effect on the economy. 

 
"The ministry proposed 20 countries with the highest (number of) foreign tourists, except for those with existing visa exemptions," Minister of Tourism and Creative Economy Sandiaga Salahuddin Uno said in Jakarta on Thursday. 

 
The 20 countries include Australia, China, India, South Korea, the United States, the United Kingdom, France, Germany, Qatar, the United Arab Emirates, Saudi Arabia, the Netherlands, Japan, Russia, Taiwan, New Zealand, Italy, Spain, and two Middle Eastern countries whose names were not disclosed. 

 
Uno said that the provision of free entry visas to the 20 countries is expected to increase foreign tourist visits, which will generate a multiplier effect, boosting domestic consumption, attracting investment, and supporting the development of the digital economy. 

 
"We are targeting quality tourists, especially those with longer stays and higher spending in the local economy," he pointed out. 

 
He said that the free entry visa proposal has been submitted to President Joko Widodo. 

 
"We will finalize the proposal next month and seek the President's direction. Once approved, the immigration department will implement the policy," Uno said. 

 
In line with the proposal, the Ministry of State-Owned Enterprises (SOEs) has also proposed 13 priority airports for accommodating foreign tourists, he disclosed. 

Source: Antaranews