Indonesia’s Coal Dynamics

How does Indonesia manage its coal phase-out. Click here to go to the video.

Key Findings

1. Coal sector transition is politically challenging.

2. Energy transition is currently underway in some emerging economies. Relying on coal export would put Indonesia’s economy at risks, coming from global price fluctuation and demand volatility due to policy changes in major coal export destination countries. Moreover, demand from major coal importer countries is expected to stagnate at best, assuming there is no change in emission standard and Green House Gas emission reduction target in those countries.

3. Policymakers and utility perceives coal as a cheap energy source to power the country.

4. Coal transition is inevitable.

5. Developing local renewable energy industry would contribute toward coal transition, national energy security, and climate policies.