Pursuing Emission Reduction Target, PLN: PLTU Needs Early Retirement

PT Perusahaan Listrik Negara (Persero) (PLN) stated that the termination of PLTU operations in Indonesia could reduce carbon dioxide emissions to reach the target of 290 million tons by 2030.

"If, for example, asked to become 290 million tons of CO2, one of the only things must be a steam power plant (PLTU) that is turned off. It can indeed be turned off, it can be done, technically it can be done," said Executive Vice President of Energy Transition and Sustainability of PLN Kamia Handayani quoting Antara, Tuesday, September 27.

Even so, he continued that it would take a lot of money to retire one of the PLTUs in Indonesia. Thus, Kamia said that Indonesia needs to rely on financial assistance or support from international parties, such as the Fair Indonesian Energy Transitional Partnership (JETP), which is committed to providing assistance funds of 20 billion US dollars or equivalent to Rp. 300 trillion.

It is known, Expert Staff to the Minister of Finance for Macroeconomics and International Finance Parjiono said that it was necessary to charge tens of trillions of rupiah to turn off the operation of one PLTU. He gave an example that the early retirement of the Ratu Port PLTU in West Java is estimated to cost IDR 12 trillion.

JETP is a commitment from developed countries that are members of the G7, namely the United States, Japan, Germany, England, France, Italy and Canada, as well as Denmark and Norway who are members of the International Partners Group (IPG) to support the acceleration of reducing greenhouse gas emissions in the electricity sector.

The program was initiated in 2021 at the 26th United Nations Climate Change Conference (UN) in Glasgow, Scotland.

However, as stated by Indonesian President Joko Widodo at the G20 summit du New Delhi, India, funding from JETP is still limited to rhetoric on paper. Until now, the funding has not been disbursed.