Mon Jan 27 07:13:04 UTC 2025: ## Indonesia’s Ambitious Net-Zero Plan Faces Reality Check

**JAKARTA, INDONESIA** – Indonesia’s ambitious plan to achieve net-zero carbon emissions by 2050, announced last November by President Prabowo Subianto, is facing significant hurdles, according to experts. The plan calls for the closure of nearly all coal-fired power plants within 15 years and the installation of 75 gigawatts (GW) of renewable energy. However, this target falls short of projected electricity demand and even Indonesia’s internationally agreed renewable energy goals.

The plan’s feasibility is further challenged by inconsistent government policies. Regulations governing rooftop solar, for instance, have changed five times since 2018, deterring investors. This uncertainty, coupled with bureaucratic delays and a cap on new solar capacity, is hindering private sector investment crucial to achieving the net-zero goal.

While the government aims for 71 GW of renewable energy capacity by 2034, current installed renewable capacity is only just over 13 GW. The ambitious target also requires a staggering $235 billion in investment, exceeding last year’s total government spending. Securing the necessary $146 billion in private sector funding to meet its Paris Agreement commitments is a major challenge.

Even government-backed initiatives, such as a subsidy program for electric motorcycle conversions, are hampered by bureaucratic bottlenecks, with only a fraction of the targeted conversions completed.

Experts warn that the current trajectory is unsustainable. Katherine Hasan of the Centre for Research on Energy and Clean Air (CREA) believes the complete closure of coal-fired power plants by 2040 is unrealistic. The initial 2030 renewable energy target has already been reduced, and the current plan may require a substantial increase in renewable energy capacity to compensate for the coal phase-out.

The future of Indonesia’s Just Energy Transition Partnership (JETP), a crucial source of funding for the energy transition, is also uncertain following the incoming US administration. Experts suggest exploring bilateral agreements with remaining JETP partners to secure funding and avoid a complete restart of the process. The lack of clarity and frequent policy reversals are casting doubt on Indonesia’s commitment to its climate goals and deterring much-needed foreign investment.

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