Indonesia Must Retire 3 GW of Coal Per Year to Meet 2040 Phase-Out Goal

This should be coupled with 8 GW of new additional renewables annually.

Indonesia's 2040 coal phase-out plan requires it to ramp its efforts to retire 3 gigawatts (GW) of coal capacity annually and scale up renewables to 65% of its energy mix, which will need 8 GW of new clean energy capacity each year.

Aside from these, Ember said Indonesia should also integrate 4 gigawatt-hours of battery storage annually until 2040. Doing so would allow it to maximise its solar energy usage, especially during peak demand periods in the non-solar hours.

This aligns with the renewable energy goals outlined in the Just Energy Transition Partnership Comprehensive Investment and Policy Plan and the projected addition of 103 GW of power capacity by 2040.

Ember said Indonesia can meet the projected 806 terawatt-hours of electricity demand by 2040 if renewable energy share reaches 65%. Solar is projected to contribute 20%, wind 11%, and other renewables—such as nuclear, geothermal, bioenergy, and hydro— around 34%.

“The country has a powerful advantage, including abundant resources for producing battery components for storage capacity. This presents a significant opportunity to integrate solar energy with batteries, facilitating the transition to a green economy,” said Dinita Setyawati, senior electricity policy analyst for Southeast Asia at Ember.