IEEFA – Transforming Indonesia’s Coal Dependence into Clean Energy Opportunities, Nov 2025

Summary

This report analyzes Indonesia's heavy reliance on coal and explores opportunities to transition to clean energy.

It highlights the structural oversupply of coal capacity, inefficiencies in the electricity grid, risks associated with aging coal-fired power plants, and the limited benefits of biomass co-firing and carbon capture. The report also discusses emerging business models for retiring coal assets, repurposing infrastructure, and innovative financial tools like transition credits and public-private partnerships to support the coal-to-clean energy transition.

Region: Asia

Published: January 2026

Author(s): IEEFA

Language: English

Tech drivers: AI

Social drivers: Pandemics Sustainability and ethics

Geopolitical drivers: Economic conditions Regulatory changes Supply chains disruption Workforce availability

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