Indonesia Plans 42% Renewable Energy by 2040

Indonesia is advancing its renewable energy agenda with a target of 42% renewable energy production by 2040, necessitating a $235 billion investment to develop infrastructure capable of generating 75 gigawatts. President Prabowo Subianto announced plans to retire all coal and fossil-fuel power plants by 2035, a decade earlier than previously planned, aiming for net-zero emissions by 2050. However, the country’s reliance on natural gas as a transitional fuel may impede its green energy transition, as fossil fuels currently account for 75% of global greenhouse gas emissions. The state-owned utility, PLN, has seen a recovery post-pandemic but relies heavily on government subsidies to maintain affordable electricity pricing. While private investment has contributed significantly to new power capacity, achieving ambitious climate goals will require a transformative shift away from fossil fuels. Indonesia's upcoming Nationally Determined Contributions (NDCs) will be crucial in shaping its commitment to global climate efforts.