Indonesia's Bold Shift: From Coal to Clean Energy by 2040

Indonesia, the world's top thermal coal exporter, plans to reduce coal usage to 33% and boost renewable energy to 42% by 2040, aiming for net zero emissions by 2050. Achieving this requires a $235 billion investment for building renewable energy infrastructure.

In a significant shift towards sustainable energy, Indonesia, known as the world's largest thermal coal exporter, has announced plans to drastically reduce its reliance on coal. By 2040, the nation aims to cut coal-fired power to 33% of its energy mix while ramping up renewable energy production to 42%.

This ambitious plan, outlined by President Prabowo Subianto, is part of Indonesia's strategy to decommission all coal and fossil fuel power plants within 15 years. The ultimate goal is to achieve net zero emissions before 2050, ten years ahead of the previously set target.

To realize this vision, Indonesia estimates a need for $235 billion in investment. This would fund the construction of renewable energy plants with a 75-gigawatt capacity and the development of 70,000 kilometers of transmission lines. Currently, Indonesia's installed power capacity exceeds 90 GW, with over half powered by coal and less than 15% by renewable sources.

(With inputs from agencies.)