Indonesia's Coal Retirement Stalled: Climate Finance Challenges

Indonesia's ambitious plan to retire 6.7 gigawatts of coal power by 2030 faces potential failure due to delayed funding from international donors under the Just Energy Transition Partnership. Despite approved loans and grants for renewable energy transition, coal retirement funds remain elusive, highlighting broader issues in global climate finance commitments.

Indonesia's initiative to retire 6.7 gigawatts of coal-fired power by 2030 is faltering amid funding delays from wealthy countries, a top official revealed to Reuters. The $20 billion pledge from the Just Energy Transition Partnership to fund this transition remains largely unfulfilled.

Paul Butarbutar, head of the JETP Indonesia Secretariat, expressed concerns during the COP30 climate summit, stressing the absence of tangible financial commitments for coal phase-out. The broader apprehensions of developing nations over slow international climate finance are prominent, as illustrated by the U.S. withdrawal from the partnership.

Thus far, $2.85 billion in loans and equity, along with $186.9 million in grants for renewable initiatives, have been approved. However, no funds for retiring coal plants have materialized, stalling the closure of key facilities like the Cirebon-1 plant. The challenges echo ongoing debates over fossil fuel subsidies and poverty eradication goals.

(With inputs from agencies.)