Indonesian Government Pushing for Clean Energy Use

Indonesian Government Pushing for Clean Energy Use

Energy and Mineral Resources Minister will push for clean energy use amid
growing pressure on Indonesia over the reduction of coal use for power
plants. Last week, European financial service companies canceled their
investment in coal-fired power plant (PLTU) projects for environmental
reasons.

Energy and Mineral Resources Ministry spokesman Sujatmiko said that the
government is aiming to cut the target of coal-fired power generation from
42,000 megawatts (MW) to 35,000 MW by 2025. "On the other hand, the use of
natural gas will increase by 24 percent,"

Moreover, Sujatmiko said that the government will step up development of
mine mouth coal thermal power plants. He said that it was more efficient and
cleaner because it will be located at mining area.

Earlier, European financial service companies withdraw from financing
Indonesian PLTU projects. Having agreed to limit global warming to 2 degrees
Celcius as set forth in Paris COP 21 agreement, Societe Generale has
canceled plans to finance development of PLTU Tanjung Jati B in Jepara,
Central Java. Credit Agricole has also canceled the loan for PLTU Jawa 1
project in Cirebon with a capacity of 1,000 MW.

Energy Minister Ignasius Jonan said that clean energy will be the
government's main focus. However, he said that the government will have to
evaluate the price to make it competitive against fossil fuel.

State-owned electricity company PT PLN procurement director Supangkat Iwan
Santoso confirmed the development of mine mouth coal steam power plants will
be included in the planned revision to Electricity Power Supply Business
Plan for 2017-2026 term. "We have submitted the proposal," he said.

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Link to Original Article:
https://en.tempo.co/read/news/2017/01/10/056834293/Indonesian-Government-Pus
hing-for-Clean-Energy-Use

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com