Emerging captive coal power: Dark clouds on Indonesia's clean energy horizon

This briefing by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) examines the growth of 'captive' coal-fired power plants in Indonesia—off-grid stations operated by industrial actors. The report highlights a significant increase in captive coal capacity, primarily driven by the metal smelting industry, and argues that this trend threatens Indonesia's national climate commitments and the goals of the Just Energy Transition Partnership (JETP).

• Captive coal power capacity in Indonesia has seen rapid growth, increasing nearly eightfold from 1.4 GW in 2013 to 10.8 GW in 2023. This expansion is nearly five times faster than the global average for captive coal capacity.
• A substantial portion of Indonesia's current and future coal capacity is dedicated to captive use. As of July 2023, captive plants account for nearly 25% of operating coal capacity, and 14.4 GW of captive coal capacity is either proposed or under construction, representing over half of all proposed coal capacity additions.
• The metal industry is the primary driver of captive coal power. Approximately 76% (8,214 MW) of operational captive capacity is dedicated to metals, with 67% (7,273 MW) specifically powering nickel smelters. Future planned captive capacity follows a similar trend, with 9.8 GW intended for nickel smelters and 3.2 GW for aluminium smelters.
• Indonesia's industrial policy, specifically the Rencana Induk Pembangunan Industri Nasional (RIPIN) 2015-2035, encourages the development of coal plants if they increase the 'added value' of natural resources. This has led to a surge in domestic smelting capacity, supported by bans on the export of raw nickel ore (effective January 1, 2020) and bauxite ore (effective June 11, 2023).
• There is a misalignment between Indonesia's industrial expansion and its climate goals. While the government has committed to Net Zero Emissions by 2060 and early retirement of utility coal plants, there is no clear plan to retire captive coal plants. Current regulations allow new captive plants if they reduce emissions by 35% within ten years of operation and do not operate beyond 2050.
• The report argues that the USD 20 billion Just Energy Transition Partnership (JETP) funding must include the retirement of captive coal plants. Failure to do so could result in 27,000 air pollution deaths and an economic burden of IDR 330 trillion (USD 20 billion) due to health impacts.

APA

Parapat, J., & Hasan, K. (2023). Emerging captive coal power: Dark clouds on Indonesia's clean energy horizon. Global Energy Monitor. https://globalenergymonitor.org/sites/default/files/migration/reports/CREA_GEM_Indonesia-Captive_2023_11.pdf

Chicago

Parapat, Jobit, and Katherine Hasan. Emerging captive coal power: Dark clouds on Indonesia's clean energy horizon. Global Energy Monitor, 2023. https://globalenergymonitor.org/sites/default/files/migration/reports/CREA_GEM_Indonesia-Captive_2023_11.pdf.

Wikipedia

{{cite report |last1=Parapat |first1=Jobit |last2=Hasan |first2=Katherine |title=Emerging captive coal power: Dark clouds on Indonesia's clean energy horizon |publisher=Global Energy Monitor |date=20 September 2023 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/CREA_GEM_Indonesia-Captive_2023_11.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{parapat2023emerging, author = {Parapat, Jobit and Hasan, Katherine}, title = {{Emerging captive coal power: Dark clouds on Indonesia's clean energy horizon}}, institution = {Global Energy Monitor}, year = {2023}, month = sep, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/CREA_GEM_Indonesia-Captive_2023_11.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }