Tuesday, May 28, 2024

Indonesia finalizes early retirement package for 660-MW coal-fired power plant

Reading Time: 2 minutes
Gusty da Costa




Minister of Finance, Sri Mulyani Indrawati, says Indonesia is finalizing an early retirement package for a 660-megawatt coal-fired power plant that will become a pilot project for energy transition.

“Currently, we are finalizing an early retirement package for a 660-megawatt (MW) coal-fired power plant that will be our pilot project,” Sri Mulyani told the Business Session of the Board of Governors of the Asian Development Bank (ADB) in Tbilisi, Georgia, on Sunday, as quoted by Antara.

The session is one of the series of the ADB’s 57th Annual Meeting held on May 2-5, 2024.

“We hope this project can be successful and replicated in other coal-fired power plants,” she said.

On that occasion, Sri Mulyani invited other countries and parties to support the financial needs in making the energy transition from fossil fuels to environmentally friendly energy in Indonesia.

“Given the large financial needs for energy transition, we would like to invite other countries and parties to support us,” she said.

She said further that the transition to renewable energy presented a formidable challenge due to Indonesia’s dependence on coal and other non-renewable resources. While there is a need to shift to renewable energy, the high cost of making the transition poses a significant financial burden, she added.

Nonetheless, Indonesia remains committed to achieving its target of 66 percent renewable energy by 2050, despite the large investments required to achieve this goal. Indonesia has established an Energy Transition Mechanism (ETM) platform to accelerate progress on the transition, with ADB playing a key role in this.

Previously, Indonesia and ADB agreed on a commitment to accelerate the implementation of early retirement of steam power plants (PLTU) in Indonesia, which is carried out within the framework of the ETM.

ADB as an international financial institution that provides loans, guarantees, capital investments, grants and technical assistance to developing countries in Asia and the Pacific, has signed a non-binding framework agreement to support the early retirement of the 660-megawatt Cirebon-1 PLTU, which is supposed to end in July 2042, but accelerated to December 2035.

The agreement was signed by ADB, State electricity company PT PLN and PT Cirebon Electric Power (CEP) as well as Indonesia’s investment management agency (INA) on the sidelines of COP28 in Dubai, United Arab Emirates in early December 2023.

Gusty da Costa






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


PT Barito Renewables Energy (BREN) has been included in the FTSE Global Equity Index, a large cap category, which will take effect on Monday, June 24, 2024
The Corruption Eradication Commission (KPK) has named a number of suspects in its investigation into the alleged corruption within the Directorate General of Railways (DJKA), the Ministry of Transportation.
Jakarta, May 27, 2024 − PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, has paid off the remaining bonds worth US$396,709,000 in accordance to the maturity date as part of the repayment of the overall bond value of US$1.35 billion issued in 2014 and listed on the Singapore Exchange.
JAKARTA – The International Labour Organization (ILO), along with three trade unions on garment, on Sunday, May 26, 2024, launched a grievance application for the Indonesian garment workers.
JAKARTA – President Joko “Jokowi” Widodo launched Government Technology (GovTech) digital application called ‘INA Digital’ in Jakarta on Monday, May 27, 2024.
Jakarta, May 27, 2024 − The Business Competition Supervisory Commission (KPPU) has found indications of violation of Law No. 5/1999 on prohibition of monopolistic practices by Lazada Indonesia (PT Ecart Webportal Indonesia).