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Indonesia's Coal Dilemma: Broken Promises, Polluted Skies
18 Feb
Summary
- Coal plant closure reversal sparks renewed environmental concerns.
- International funding for energy transition faces significant hurdles.
- Local communities report health issues and livelihood losses.

Indonesia's commitment to transitioning away from coal faces renewed skepticism following the government's decision to keep the Cirebon-1 power plant operational. Originally slated for early retirement in 2035 as part of the Just Energy Transition Partnership (JETP), the plant's extended lifespan raises concerns among local communities. Residents like Supriyanto and Sarjum report a decline in seafood harvests and adverse health effects, which they attribute to the plant's wastewater and emissions. The Cirebon-1 plant, operational since 2012, is a 660-megawatt facility, with a second, larger plant commencing operations in 2023.
The JETP, a $21.8 billion international deal, aims to support emerging economies in greening their energy grids. However, progress has been slow, with only a fraction of the pledged funds being disbursed. Critics point to funding accessibility issues and the risk of debt traps. This situation has led to a "deadlock," with partner nations pursuing their own energy transition agendas, potentially diverting focus from the JETP.
Despite President Prabowo Subianto's commitment in 2024 to phase out fossil fuel plants within 15 years, the December decision to extend Cirebon-1's operation signals a shift. The government cited the plant's efficiency and long potential lifespan, opting to target older facilities for closure instead. This reversal sends a mixed signal about the nation's clean energy commitment, highlighting the urgent need for alternative power sources and market-led transition strategies.
Coal remains a dominant energy source in Indonesia, powering nearly 70% of its electricity. Projections indicate significant new coal and gas capacity additions by 2034. Around Cirebon, studies link the plant's emissions to hundreds of annual deaths and increased respiratory illnesses, further fueling local activism for its closure. While the plant's owner maintains compliance with regulations, the government's U-turn has eroded local trust, leaving residents disheartened about future environmental protection.



