Indonesia Vows to Cut Coal Use to 33% of Energy Mix by End of 2040  

 

Renewables accounted for less than 14 percent of the country's energy mix last year, while coal contributed more than 40 percent. 

 

The government plans to slash the share of coal-fired power generation in the country’s energy mix to just 33 percent, while increasing the contribution of renewables to 42 percent by the end of 2040. 

 

Coordinating Economic Minister Airlangga Hartarto made the statement on the sidelines of the Group of 20 (G20) meeting in Rio de Janeiro, Brazil, on Wednesday, adding that the country was prepared to add 75 gigawatts of renewables and 70,000 kilometers of new transmission lines to realize the vision.  

 

“To achieve this vision, Indonesia will need US 235 billion dollars in investment,” Airlangga said in a statement on Wednesday.  

 

Indonesia, home to the country’s fourth-biggest population, is one of world’s largest thermal coal exporters and carbon emitters.  

 

That figure, if achieved, would mark a jump in the country’s energy transition, with Energy and Mineral Resources Ministry data showing that renewables accounted for less than 14 percent last year, while coal contributed more than 40 percent.  

 

The rest of last year’s energy mix came from oil and gas, which accounted for over 30 percent and 16 percent, respectively.  

 

Last week, President Prabowo Subianto said Indonesia was one of few countries that could meet its entire energy needs without relying on fossil fuels.  

 

He told leaders at the Asia-Pacific Economic Cooperation (APEC) summit in Lima on Nov. 14 that the country was blessed with natural resources and thus could be completely self-sufficient in clean energy.  

 

The commitment to accelerate clean energy use comes as the country has fallen behind its own timeline in its efforts to reduce the carbon footprint of power production.  

 

Last year, Indonesia missed its renewables target for the energy mix, as the share failed to reach the 17.87 percent deemed necessary to keep the country on track for the 2025 target.  

 

The National Energy Council (DEN) proposed cutting the target for the country’s renewables share in the energy mix to just between 17 and 19 percent by the end of 2025 down from the previously envisioned 23 percent. The Energy Ministry said in January that Indonesia would need to be realistic. 

 

In November last year, the ministry and state-owned electricity firm PLN agreed to focus more on controlling emissions from coal-fired power plants, while keeping them up and running until the end of their lifespans, rather than retiring them early to expedite the shift to cleaner energy. 

 

Source: The Jakarta Post 

BP and Partners to Invest USD 7 Bn in Carbon Capture Project in Indonesia's Papua 

 

BP and partners said they would invest USD 7 billion in a carbon capture project and gas field development in Indonesia's easternmost Papua region that could unlock 3 trillion cubic feet of additional gas resources. 

 

The British oil and gas producer announced the investment on Thursday in a meeting with President Prabowo Subianto who is visiting London. 

 

Production at Ubadari field is scheduled to start in 2028 and gas from the site will be processed at the company's existing Tangguh liquefied natural gas facility in West Papua, it said in a statement. 

 

BP added that CO2 recovered from its first carbon capture, utilization and storage project in Indonesia would be used to boost production at the Tangguh facility. 

 

The project has the "potential for sequestering around 15 million tons of CO2 from Tangguh’s emissions in its initial phase," the energy giant said. 

 

Prabowo said British firms have committed to invest USD 8.5 billion in Indonesia's energy transition, education, infrastructure and health sectors, including the USD 7 billion BP project. 

 

"This shows their optimism in our economy," Prabowo said in a separate statement on Thursday. 

 

The project is part of the Tangguh Production Sharing Contract operated by BP, which owns 40.2%, on behalf of the other production-sharing contract partners, including China's CNOOC, and Japan's Mitsubishi Corp, Inpex Corp and Japan Oil, Gas and Metals National Corp. 

 

It was first approved by Indonesia's oil and gas regulator in 2021. 

 

Source: Reuters 

RI, Brazil Ink Cooperation Pacts Worth USD 2.65 Bn  

 

Indonesia and Brazil signed five cooperation agreements (memorandums of understanding) worth USD 2.65 billion at a business forum held on the sidelines of the G20 Summit in Rio de Janeiro on Sunday. 

 

"I want to emphasize that Indonesia is open for business," chairperson of the advisory board of the Indonesian Chamber of Commerce and Industry (Kadin), Hashim S. Djojohadikusumo, said at the Indonesia-Brazil Business Forum. 

 

He said that the agreements cover several sectors and involve a significantly large investment that will later drive economic growth and improve business relations between the two countries, which have committed to a sustainable partnership. 

 

Kadin chair Anindya Bakrie said that the signing of the cooperation agreements marks a new chapter in the collaboration between Indonesia and Brazil, particularly in the renewable energy, agriculture, and technology sectors. 

 

"The Indonesian Chamber of Commerce and Industry is proud to be a part of this transformative collaboration," he added. 

 

The Indonesia-Brazil Business Forum – held to exchange commitments between the two countries for sustainable development and economic growth – also focused on exploring new collaboration opportunities, especially related to trade, investment, energy, and sustainable development. 

 

It was in line with the main theme of the G20 Brazil Presidency, "Building a just world and a sustainable planet." 

 

Meanwhile, the president of the Brazilian National Confederation of Industry (CNI), Ricardo Alban, said that both Brazil and Indonesia are driven by the spirit of innovation, growth, and sustainability. 

 

"The partnership built today is the foundation for a new era of collaboration for both countries. Through this partnership, we are paving the way for growth that is not only profitable for business, but also contributes to larger goals such as reducing carbon emissions, promoting sustainable practices, and creating jobs," he informed. 

 

"By leveraging each other's economic strengths and expertise in key industries such as agribusiness, biofuels, and mining, we will drive economic growth while sharing the responsibility to ensure a sustainable future for future generations," Alban added. 

 

Economic cooperation between Indonesia and Brazil has continued to increase over the past few years. 

 

In 2022, Indonesia exported goods worth USD 1.91 billion to Brazil, with the main products being palm oil, coconut oil, and rubber. 

 

Brazil exported goods worth USD 359 million to Indonesia in 2024, resulting in a positive trade balance of USD 169 million for Brazil. 

 

Source: Antaranews