Can Indonesia really achieve a net zero power sector by 2040?

The document argues that Indonesia can technically achieve a net zero power sector by 2040, which would accelerate the broader national net zero target to 2050. This transition requires phasing out unabated coal, significantly increasing annual electricity investment to USD 40 billion this decade and USD 80 billion in the next, and addressing grid flexibility and inter-regional connectivity. While the transition would result in a net gain of 265,000 jobs, it would cause 230,000 losses in coal mining, necessitating just energy transition policies. The author notes that Presidential Regulation No. 112/2022 is a positive step toward attracting renewable investment and retiring coal plants.

• To reach net zero emissions in the power sector by 2040, Indonesia must phase out unabated coal power, with reductions starting in the 2020s. In the IEA's 2050 NZE scenario, coal-fired generation by 2030 would be 70% lower than in the announced pledges scenario.
• Annual investment in the electricity sector must increase significantly: to nearly USD 40 billion in the current decade and to approximately USD 80 billion in the following decade, compared to 2010 levels. About 50% of this should target renewable energy, specifically solar and wind, and flexible grid technology.
• The energy transition is expected to create 500,000 new jobs in energy supply, primarily in electricity, while causing 230,000 job losses in coal mining, resulting in a net gain of 265,000 jobs.
• Indonesia possesses high technical potential for utility-scale solar (1,462 GW) and wind (500 GW). However, adoption is hindered by PT PLN's "take or pay" clauses in Power Purchase Agreements and a lack of inter-regional connectivity between main islands.
• Presidential Regulation No. 112/2022 serves as a mechanism to attract renewable energy investment and provides the first formal regulation for the early retirement of coal power in Indonesia.

APA

Jones, D., & Sucahyo, R. (2022). Can Indonesia really achieve a net zero power sector by 2040? Ember. https://ember-energy.org/latest-insights/can-indonesia-really-achieve-a-net-zero-power-sector-by-2040

Chicago

Jones, Dave, and Rini Sucahyo. Can Indonesia really achieve a net zero power sector by 2040? Ember, 2022. https://ember-energy.org/latest-insights/can-indonesia-really-achieve-a-net-zero-power-sector-by-2040.

Wikipedia

{{cite report |last1=Jones |first1=Dave |last2=Sucahyo |first2=Rini |title=Can Indonesia really achieve a net zero power sector by 2040? |publisher=Ember |date=19 September 2022 |url=https://ember-energy.org/latest-insights/can-indonesia-really-achieve-a-net-zero-power-sector-by-2040 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jones2022can, author = {Jones, Dave and Sucahyo, Rini}, title = {{Can Indonesia really achieve a net zero power sector by 2040?}}, institution = {Ember}, year = {2022}, month = sep, url = {https://ember-energy.org/latest-insights/can-indonesia-really-achieve-a-net-zero-power-sector-by-2040}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }