Breaking Coal Lock-In: Unravelling the Policy Hurdles to Decarbonising Indonesia’s Energy Sector
DOI:
https://doi.org/10.31947/jakpp.v10i2.35427Keywords:
Coal, Decarbonisation, Early Retirement, Policy, Power PlantAbstract
The Indonesian government has ratified the 2015 Paris Agreement, thereby committing itself to a climate commitment to achieve zero carbon emissions by 2060 and to keep the Earth's temperature rise within 1.5 degrees Celsius above the pre-industrial average. This commitment is being implemented in various ways, including the decarbonisation of the electricity sector. This policy was promulgated in Presidential Regulation 112/2022 regarding acceleration of renewable energy development and Ministry of Finance Regulation 103/2023 on the fiscal support of energy transition. In this case, many aspects such as institutionalisation, visibility, intentionality, risk avoidance, and differences of interest appear to lead to procedural policy outcomes which later determine th decarbonisation rate of Coal-Fired Power Plants (CFPP). This article seeks to examine the procedural aspects of the early coal-fired power plant retirement policy innovation, based on Howlett's (2014) theory of climate policy innovation. This research employs qualitative methods, including in-depth interviews with stakeholders and literature studies. This article explains that the policy formulation in Presidential Regulation 112/2022 tends to be procedurally negative and hampers several CFPPs' early retirement processes in West Java and Banten. The weaknesses of this policy are clearly visible in the form of administrative delays and criteria restrictions. The article posits that the existing CFPP early retirement policy exerts varying degrees of influence on Cirebon-1 CFPP, Suralaya CFPP and Pelabuhan Ratu CFPP.
References
Adhinegara, B. Y., Saleh, M., Huda, N., & Monica, L. (2024). Antisipasi Dampak Ekonomi Pensiun Dini Pltu Batu Bara: Studi Kasus Pada Pltu Cirebon-1, Pltu Pelabuhan Ratu dan Pltu Suralaya. CELIOS & Yayasan Indonesia Cerah.
Ashri, A. F. (2024). Pensiun Dini, PLTU cirebon-1 Beroperasi Hingga tahun 2035. Retrieved from https://www.kompas.id/baca/nusantara/2024/03/27/
pensiun-dini-pltu-cirebon-1-beroperasi-hingga-tahun-2035
Babić, M., & Dixon, A. (2023). Decarbonising States as Owners. New Political Economy, 28(4).
Benoit, Philippe, Clark, A., Schwarz, M., & Dibley, A. (2022). Decarbonization in state-owned power companies: Lessons from a comparative analysis. Journal of Cleaner Production, 355. 1-13.
Benoit, Phillippe. (2019). Engaging State Owned Enterprises in Climate Action. New York: Center on Global Energy Policy
Benoit, Phillippe. (2020). State-Owned Enterprises: No Climate Success Without Them . Journal of International Affairs, 73(1). 135-143.
Black, S., Liu, A., Parry, I., & Vernon, N. (2023). working paper. IMF Fossil Fuel Subsidies Data: 2023 Update. Washington, DC: IMF.
Bridle, R., Gass, P., Halimajaya, A., Lontoh, L., McCulloch, N., Petrofsky, E., & Sanchez, L. (2018). Missing the 23 Per Cent Target: Roadblocks to the development of renewable energy in Indonesia. report. Manitoba: The International Institute for Sustainable Development.
Brown, M., & Hauber, G. (2021). ADB Backs Coal Power Retirement In Southeast Asia. Lakewood: Institute for Energy Economics and Financial Analysis.
Burandt, T., Xiong, B., Löffler, K., & Oei, P.-Y. (2019). Decarbonizing China’s energy system – modeling the transformation of the electricity, transportation, heat, and industrial sectors. Applied Energy, 255, 113820. 1-17. doi:10.1016/j.apenergy.2019.113820
Bößner, S., Fauzi, D., & Rimal, P. (2023). report. A just coal transition in Indonesia: actors, framings and future directions. Stockholm: Stockholm Environment Institute.
Clark, A., Jhindal, A., Shrimali, G., Springer, C., & Rafaty, R. (2023). working paper. Capitalizing on Coal: Early Retirement Options for China-Financed Coal Plants in Southeast Asia and Beyond. Stamford Road: Singapore Green Finance Centre.
Climate Action Tracker. (2023). report. Clean electricity within a generation: Paris-aligned benchmarks for the power sector. Berlin: Climate Analytics.
CNBC Indonesia. (2023). 4 unit Pltu Akhirnya Dimatikan, ini Pemiliknya.. Retrieved from https://www.cnbcindonesia.com/news/20230904083233-4-468747/4-unit-pltu-akhirnya-dimatikan-ini-pemiliknya
Copley, J. (2022). Decarbonizing the downturn: Addressing climate change in an Age of Stagnation. Competition & Change, 27(3–4), 429–448. doi:10.1177/10245294221120986
Creswell, J. W., & Creswell, J. D. (2014). Research design qualitative, quantitative, and mixed methods approaches. Thousand Oaks, CA: SAGE.
Cui, R., Tumiwa, F., Zhao, A., Arinaldo, D., Wiranegara, R., Cui, D., … Hultman, N. (2022). report. Financing Indonesia’s Coal Phase-out: A Just and Accelerated Retirement Pathway to Net-Zero. College Park: IESR and UMD.
Deny, S. (2023). Pltu Jawa 9 dan 10 Bakal Jadi Pembangkit Listrik hybrid pertama di Indonesia. Retrieved from https://www.liputan6.com/bisnis/read/5391915
/pltu-jawa-9-dan-10-bakal-jadi-pembangkit-listrik-hybrid-pertama-di-indonesia
Dewi, R., & Agarta, V. (2023). Pensiun Dini PLTU, Inilah Dampak Dan Keuntungan Yang dihasilkan. Retrieved from https://koran.tempo.co/read/ekonomi-dan-bisnis/481959/pensiun-dini-pltu-inilah-dampak-dan-keuntungan-yang-dihasilkan
Direktorat Jenderal Ketenagalistrikan, & Dirjen Ketenagalistrikan Kementerian ESDM, Tata Cara Penyusunan Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) (2021). Jakarta: Direktorat Pembinaan Program Ketenagalistrikan.
Do, T. N., & Burke, P. J. (2024). Phasing out coal power in two major Southeast Asian thermal coal economies: Indonesia and Vietnam. Energy for Sustainable Development, 80, 101451. 1-13. doi:10.1016/j.esd.2024.101451
Dutu, R. (2016). Challenges and policies in Indonesia’s energy sector. Energy Policy, 98, 513–519. doi:10.1016/j.enpol.2016.09.009
Fajri, M. (2023). PLN Beberkan Revisi RUPTL 2024-2033, Pembangkit EBT Jadi 75 persen. Retrieved from https://kumparan.com/kumparanbisnis/pln-beberkan-revisi-ruptl-2024-2033-pembangkit-ebt-jadi-75-persen-21a9oGKIt9A/full
Falkner, R. (2009). Business Power and conflict in International Environmental Politics. New York: Palgrave Macmillan.
Febriyanti, A. H., Murtadho, S. A., & Almattushyva, Y. (2023). Not so ambitious? Indonesia’s coal dependence amidst the era of energy transition. Global South Review, 5(1), 47-61. doi:10.22146/globalsouth.81488
Gillich, A., Hufendiek, K., & Klempp, N. (2020). Extended policy mix in the power sector: How a coal phase-out redistributes costs and profits among power plants. Energy Policy, 147, 111690. doi:10.1016/j.enpol.2020.111690
Halimatussaidah, A., Razazk, F. A., & Pratama, M. Y. (2023). Working paper. Apa yang baru dalam Peraturan Presiden Republik Indonesia Nomor 112 Tahun 2022 tentang Percepatan Pengembangan Energi Terbarukan untuk Penyediaan Tenaga Listrik. Depok: LPEM FEB UI.
Hamdi, E., & Adhiguna, P. (2021). report. Indonesia Wants to Go Greener, but PLN Is Stuck With Excess Capacity From Coal-Fired Power Plants. Lakewood: Institute for Energy Economics and Financial Analysis.
Harrison, K., & Sundstrom, L. (2007). Introduction. In Global Environmental Politics (pp. 1–18). essay, MIT Edu Press.
Hood, C. (2014). Blame game: Spin, bureaucracy, and self-preservation in government. Hoboken, NJ: John Wiley & Sons, Inc.
Howlett, M. (2000). Managing the “hollow state”: Procedural Policy Instruments and modern governance. Canadian Public Administration, 43(4), 412–431. doi:10.1111/j.1754-7121.2000.tb01152.x
Howlett, M. (2014). Why are policy innovations rare and so often negative? blame avoidance and problem denial in climate change policy-making. Global Environmental Change, 29, 395–403. doi:10.1016/j.gloenvcha.2013.12.009
IESR. (2024). report.. Indonesia Energy Transition Outlook 2024. Jakarta: IESR.
Indikator Politik Indonesia. (2021). publication. Survei Nasional: Persepsi Pemilih Pemula dan Muda atas Permasalahan Iklim di Indonesia. Jakarta: Indikator Politik Indonesia.
Isnaini, D. M. (2021). Indonesia’s climate change policies: under the tug of domestic and international influences. JURNAL ILMU SOSIAL, 1(2), 111–141. doi:10.14710/jis.1.2.2021.111-141
Jaffe, A. M. (2022). State Owned Enterprises and the Energy Transition. Papeles de Energia, 17, 67–81.
JETP Secretariate. (2023). (tech.). Comprehensive Investment and Policy Plan 2023. JETP Secretariate.
Jordan, A., Lorenzoni, I., Tosun, J., i Saus, J. E., Geese, L., Kenny, J., … Schaub, S. G. (2022). The political challenges of deep decarbonisation: Towards a more integrated agenda. Climate Action, 1(1). doi:10.1007/s44168-022-00004-7
Karapin, R. (2016). Political opportunities for climate policy. Cambridge: Cambridge University Press.
Keles, D., & Yilmaz, H. Ü. (2020). Decarbonisation through coal phase-out in Germany and Europe — impact on emissions, electricity prices and power production. Energy Policy, 141, 111472. 1-15. doi:10.1016/j.enpol.2020.111472
Kementerian ESDM, Handbook of Energy & Economic Statistics of Indonesia 2022 (2022). Kementerian ESDM.
Kementerian ESDM. (2024). Pemerintah Kejar tingkatkan Bauran Ebt. Retrieved from https://www.esdm.go.id/en/media-center/news-archives/pemerintah-kejar-tingkatkan-bauran-ebt
Listiyorini, E., Harsono, N., & Mokhtar, F. (2023). Closing Coal Plants Proves a Hard Sell for Big Global Banks. Retrieved from https://www.bloomberg.com/news/features/2023-08-15/closing-coal-plant-early-in-indonesia-tests-climate-finance-in-asia
Lucarelli, B. (2023). report. Indonesia’s Energy Transition from Coal to Renewables, 2023-2050 Policy Options and Technical Considerations. Tokyo: Roleva Energy and ADBi.
Mediatama, G. (2023). Pensiun Dini Pltu Pelabuhan Ratu Harapkan Dapat Pendanaan murah. Retrieved from https://industri.kontan.co.id/news/pensiun-dini-pltu-pelabuhan-ratu-harapkan-dapat-pendanaan-murah
Mediatama, G. (2024). Menilik Pengoperasian Pembangkit Baru Dan Persoalan oversupply kelistrikan. Retrieved from https://industri.kontan.co.id/news/menilik-pengoperasian-pembangkit-baru-dan-persoalan-oversupply-kelistrikan
Miles, M. B., & Huberman, A. M. (1994). Qualitative Data Analysis: A methods sourcebook. Los Angeles: SAGE.
Mori, A. (2020). Foreign actors, faster transitions? co-evolution of complementarities, perspectives and sociotechnical systems in the case of Indonesia’s Electricity Supply System. Energy Research & Social Science, 69, 101594. doi:10.1016/j.erss.2020.101594
Muhajir, M., Yazid, F., & Atikah, G. A. (2023). report. Mencegah Korupsi dalam Skema Pensiun Dini PLTU di Indonesia (pp. 1–96). Transparency International.
Muliawati, F. D. D. (2024). Apa Kabar Rencana Pensiun Dini Pltu Pelabuhan Ratu? Ini Kata Ptba. Retrieved from https://www.cnbcindonesia.com/news/20240508191651-4-536846/apa-kabar-rencana-pensiun-dini-pltu-pelabuhan-ratu-ini-kata-ptba
Neuman, W. L. (2014). Social Research Methods: Qualitative and quantitative approaches. Boston, MA: Pearson Education, Inc.
OECD. (2021). Tinjauan Kebijakan Pembiayaan dan Investasi Energi Bersih Indonesia. Paris: OECD Publishing.
Ordonez, J. A., Jakob, M., Steckel, J. C., & Fünfgeld, A. (2022). Coal, power and coal-powered politics in Indonesia. The Political Economy of Coal, 281–299. doi:10.4324/9781003044543-19
Orie, E. (2024). Persepsi Masyarakat atas Kebijakan Pemensiunan Dini PLTU Batu Bara dalam Transisi Energi. nstitute for Policy Development .
O’Flynn, I. (2010). Deliberating about the public interest. Res Publica, 16(3), 299–315. doi:10.1007/s11158-010-9127-x
Prasetiyo, A., Suarez, I., Parapat, J., & Amali, Z. (2023). report. Ambiguities versus Ambition: A Review of Indonesia’s Energy Transition Polic. Jakarta: CREA and Trend Asia.
PT PLN, 2022 Annual Report: Leading the Way to Empower Nation (2023). PT PLN.
PT PLN, Rencana Usaha Penyediaan Listrik (RUPTL) 2021-2030 (2021). Pembangkit Listrik Negara (PLN).
Qamar, F. A., & Purnomo, T. (2024). report. Coals’ Endgame: Cost Benefit Analysis of Early Retirement Coal-Fired Power Plant versus CFPP with Carbon Capture and Storage. IESR.
Republika ID. (2024). Indonesia finalisasi paket pensiun dini PLTU: Republika ID. Retrieved from https://www.republika.id/posts/52537/indonesia-finalisasi-paket-pensiun-dini-pltu
Resosudarmo, B. P., Rezki, J. F., & Effendi, Y. (2023). Prospects of Energy Transition in Indonesia. Bulletin of Indonesian Economic Studies, 59(2), 149–177. doi:10.1080/00074918.2023.2238336
Rockström, J., Gaffney, O., Rogelj, J., Meinshausen, M., Nakicenovic, N., & Schellnhuber, H. J. (2017). A roadmap for rapid decarbonization. Science, 355(6331), 1269–1271. doi:10.1126/science.aah3443
Schwarz, M., Benoit, P., & Clark, A. (2023). (working paper). Decarbonising States Owned Power Companies: A Framework for Applying Policy Actions (1st ed., Vol. 23).
Sekaringtias, A., Verrier, B., & Cronin, J. (2023). Untangling the socio-political knots: A systems view on Indonesia’s Inclusive Energy Transitions. Energy Research & Social Science, 95, 102911. 1-13. doi:10.1016/j.erss.2022.102911
Setiawan, V. N. (2023). ESDM Ungkap 2 nama pltu Yang Siap Dipensiunkan dini. Retrieved from https://www.cnbcindonesia.com/news/20230822145341-4-465106/esdm-ungkap-2-nama-pltu-yang-siap-dipensiunkan-dini
Sujai, M., Wahyudi, R., & Sakina, N. A. (2023). working paper. Transition from Coals to Renewable Energy: Evidence from Indonesia. Tokyo: ADB Institute
Sukmawijaya, A. (2023). ADB sepakat bantu pensiun Dini PLTU Cirebon-1 jadi 7 Tahun Lebih Awal. Retrieved from https://kumparan.com/kumparanbisnis/adb-sepakat-bantu-pensiun-dini-pltu-cirebon-1-jadi-7-tahun-lebih-awal-21i8UgNnjTG/full
Tritto, A. (2021). China’s belt and road initiative: From perceptions to realities in Indonesia’s coal power sector. Energy Strategy Reviews, 34, 100624. doi:10.1016/j.esr.2021.100624
Tørstad, V., Sælen, H., & Bøyum, L. S. (2020). The domestic politics of international climate commitments: Which factors explain cross-country variation in ndc ambition?. Environmental Research Letters, 15(2). 1-11.
Wahyuni, E. (2022). Challenges in Facing Indonesia’s Energy Commitment. In ndonesia post-pandemic outlook: Strategy towards net-zero emissions by 2060 from the renewables and carbon-neutral energy perspectives (pp. 23–40). essay, BRIN Publishing.
World Resources Institute. (2022). Statement: G20 Summit sends positive signal for COP27; countries announce major funding package for Indonesia’s energy transition. Retrieved from https://www.wri.org/news/statement-g20-summit-sends-positive-signal-cop27-countries-announce-major-funding-package
Xiao, J., Li, G., Xie, L., Wang, S., & Yu, L. (2021). Decarbonizing China’s power sector by 2030 with consideration of technological progress and cross-regional power transmission. Energy Policy, 150, 112150. 1-14.
Yoseph-Paulus, R., & Hindmarsh, R. (2016). Addressing inadequacies of sectoral coordination and local capacity building in Indonesia for effective climate change adaptation. Climate and Development, 10(1), 35–48. doi:10.1080/17565529.2016.1184609
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Hansen Sukma Kartika, Ali Muhyidin
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
