Indonesia’s rapid industrialisation over the past decade, particularly in energy-intensive
sectors such as nickel processing, aluminum, steel, and pulp and paper, has brought about a
substantial expansion of captive power generation. These on-site or dedicated power systems
have become the backbone of industrial growth, ensuring reliable electricity for operations that
require constant, high-quality supply. Much of this expansion, however, has relied on coal,
resulting in rising greenhouse gas emissions, mounting regulatory pressures, and emerging
concerns about long-term competitiveness within global markets that are increasingly
demanding low-carbon materials. The Captive Power Study was undertaken to examine the
scale of this challenge, identify realistic transition pathways, and understand the implications
for Indonesia’s JETP commitments, industrial development, and economic resilience.