News and Updates

Indonesia will rely more on private investors for its planned 71 gigawatt expansion in power capacity over the next decade, with the government to focus on transmission for renewable generation, the country's energy minister said on Monday.

Energy minister Bahlil Lahadalia said state utility Perusahaan Listrik Negara's (PLN) 2025-2034 power supply plan will include 71 GW of new power capacity and 48,000 circuit-km of transmission lines, which is equivalent to 8,000 km (4,971 miles) straight line.

This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: Wikimedia Commons

Jakarta, 4 November 2024: GIZ Energy Programme Indonesia/ASEAN (GIZ) and TransitionZero, a leading non-profit climate analytics organisation, have announced a strengthened strategic partnership to accelerate Indonesia’s energy transition. This collaboration aims to support the achievement of Indonesia’s ambitious target of increasing the renewable energy mix to 23% by 2025 and realising the decarbonisation of the electricity sector. 

This partnership will focus on several key areas: 

Capacity Building for Energy Studies Centres (ESCs): Through training and access to TransitionZero’s open-source energy modelling tools, ESCs in Indonesia will be equipped with stronger analytical capabilities to design and evaluate effective energy policies. 

Knowledge Exchange and Best Practice Sharing: GIZ and TZ will share knowledge and experience in energy modelling, transition planning, and sustainable energy policies. 

Development of Energy Transition Scenarios: Together, GIZ and TZ will develop realistic and ambitious energy transition scenarios for Indonesia, considering the specific conditions of regions and sectors. 

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' .

**Photo credit: CASE

As global demand for steel is rising, Indonesia’s steel industry is one of the country’s largest industrial greenhouse gas emitters and is set to become far more polluting if current trends continue, according to a nonprofit report.

Indonesia signed a Mutual Recognition Agreement with Verra, linking its national carbon registry (SRN-PPI) to global standards and unlocking up to 50 million carbon credits ahead of COP30. The partnership, which follows collaboration with Gold Standard, aims to enhance transparency, attract international buyers, and align Indonesia’s carbon market with its Paris Agreement and NDC goals.

Indonesia’s state utility PLN is prioritizing natural gas as a bridging fuel, expanding capacity by 9.3 GW despite high costs, underused plants, and declining reserves. Critics warn this risks fossil fuel lock-in, subsidies, and diverting resources from renewables.

Indonesia plans to add 103 GW of new power capacity by 2040, with a strong focus on renewable energy. According to the president’s aide, contracts for this expansion are expected to be awarded within the next five years as the country accelerates efforts to diversify its energy mix and reduce emissions.

Indonesia has initiated a green hydrogen collaboration to decarbonize its maritime sector, aligning with its Nationally Determined Contributions. PT PLN, the Ministry of Transportation, PT HDF Energy Indonesia, and PT ASDP Indonesia Ferry signed a joint study agreement to explore green hydrogen as marine fuel. 

The Indonesia Stock Exchange invited foreign participants to join its carbon trading, saying the certification mechanism has been improved following tepid activities on the IDXCarbon bourse last year.

The IDX listed five low-carbon energy projects under state utility Perusahaan Listrik Negara in its offering of carbon credits to foreign buyers, including gas-powered and hydropower plants on the island of Java. These had previously been available to domestic investors, but IDX and government officials said the certification mechanism has been improved to satisfy foreign buyers.

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: Rezha Hadyan/Nikkei Asia