The Cirebon-1 Coal-fired Power Plant (PLTU), which is planned for early retirement, is estimated to attract investment worth US$198 million (Rp3.2 trillion) through the construction of a solar panel and electric battery factory.
The early retirement program of Cirebon-1 PLTU can be executed after it received funding from the Asian Development Bank (ADB). In addition, the early retirement of Cirebon-1 PLTU is also economically possible.
“So we want early retirement with two conditions, first there is someone who will finance it, and when we calculate it, it will not be too burdensome for the state, it will not be too burdensome for PLN (State power utility company), and it will not be too burdensome for the people,” Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), said on Monday, February 3, 2025.
“If there is someone who will finance it cheaply like this, thank God. If possible, we can retire everything (the PLTU), the important thing is that there is someone who will finance it,” he added.
Bahlil cited that Indonesia still plans to carry out early retirement of the Cirebon-1 PLTU, as part of Indonesia’s commitment to achieving Net Zero Emission (NZE) by 2060.
“As a form of our commitment, Indonesia is retiring the 660 Megawatt (MW) Cirebon-1 PLTU early, seven years before the retirement date, we are withdrawing it,” he said.
Later, Cirebon-1 PLTU is planned to be replaced by a new renewable energy power plant, which consists of a Solar Power Plant (PLTS) and 700 MW electric battery, a 1,000 MW Wind Power Plant (PLTB), a 346 MW Low Power-Power Plant (PLTR) and a 12 MW Waste Power Plant (PLTSa). This early retirement is expected to create potential employment for 39,707 people.
Bahlil, however, criticized a number of parties who forced Indonesia to carry out early retirement, because early retirement of PLTU must be carried out carefully so as not to harm the country.
He stressed that Indonesia is very open to the option of early retirement of PLTU, with the note that there is financing with low interest, long-term loans, and does not cause electricity to rise.
