Indonesia is still dependent on fossil energy, in this case coal, for energy fulfillment. This then becomes a challenge for energy transition in Indonesia. Chairman of Commission VII of the House of Representatives Sugeng Suparwoto detailed that of the total national power generation capacity of 72.4 gigawatts (GW), 67% or most of them are coal-fired power plants.

However, the coal used comes from domestic reserves. Currently, Indonesia's coal reserves are recorded at 38 billion metric tons. With coal reserves of that size and annual production of around 800 million tons, Indonesia is estimated to be able to manage its coal resources for almost 60 years.

However, with Indonesian coal being a low calorie category, the level of carbon emissions produced will also be high. In fact, Indonesia itself is aggressively developing renewable energy sources as a substitute for coal energy which is considered 'dirty' producing high carbon emissions.

Based on data from the Handbook of Energy and Economic Statistics of Indonesia 2023 released by the Ministry of Energy and Mineral Resources (ESDM) on June 7, 2024, Indonesia's coal production in the last 10 years has continued to surge.

The use of coal in the country has also seen a surge in the last decade. In 2013, Indonesia's coal consumption was recorded at 72.07 million tons. Then, it jumped to 138.42 million tons in 2019, and 212.87 million tons in 2023.

 

Source : www.cnbcindonesia.com

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