Tbilisi, Georgia (ANTARA) – Indonesia has completed an early retirement package for a 660 megawatt coal-fired power plant (PLTU) as a pilot project for energy transition, Finance Minister Sri Mulyani Indrawati said.
“We are at the stage of finalizing the early retirement package for the 660 megawatt PLTU which will be our pilot project,” he said at the Business Session of the Board of Governors of the Asian Development Bank (ADB) in Tbilisi, Georgia, on Sunday.
Speaking at the session, which is one of the series of the 57th ADB Annual Meeting on May 2-5, 2024, he called on countries and other parties to support the financial needs in making the energy transition from fossil to environmentally friendly energy in Indonesia.
“Because of the great financial need for the energy transition, we want to invite other countries and parties to support us,” he said.
Indrawati mentioned that the transition to renewable energy presents serious challenges as Indonesia depends on coal and other non-renewable resources.
The need to switch to renewable energy requires high costs that can lead to a significant financial burden, he added.
However, Indonesia remains committed to achieving the target of 66 percent renewable energy by 2050. Indonesia has established an Energy Transition Mechanism (ETM) platform to accelerate transition progress, with ADB playing an important role in this.
Earlier, Indonesia and ADB agreed on a commitment to speed up the implementation of early retirement for PLTU in Indonesia, which is carried out under the ETM framework.
As an international financial institution that provides loans, guarantees, capital investments, grants, and technical assistance to developing countries in Asia and the Pacific, ADB has signed a non-binding framework agreement to support the decommissioning of PLTU with a capacity of 660 megawatts. Cirebon-1, which was supposed to be completed in July 2042 was accelerated to December 2035.
The agreement was signed by ADB, the state electricity company PT PLN, and PT Cirebon Electric Power (CEP), as well as Indonesia’s investment management agency (INA) on the sidelines of COP28 Dubai in the United Arab Emirates in early December 2023. .
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