Retire Early PLTU, Ministry Of Finance And PT SMI Search For Creative Funding Innovation

BOGOR - Ministry of Finance (Kemenkeu) and special mission vehicle (SMV) PT Sarana Multi Infrastruktur (SMI) (Persero) are looking for creative land acquisition innovations to retire the Steam Power Plant (PLTU) early. This is the government's commitment to go to Net Zero Emission (NEZ).

Head of the Center for Climate and Multilateral Change Financing Policy of the Fiscal Policy Agency (BKF) of the Ministry of Finance Boby Wahyu Hernawan said the government had not been able to replace coal Steam Power Plants (PLTU) to be diverted to more environmentally friendly energy sources.

According to Boby, until now Indonesia still uses around 60 percent of coal energy sources to become the main national energy source. In addition, the budget for the use of new stones is cheaper than others.

"One of Indonesia's energy sources is of course the coal (coal) earlier. That cannot be denied and this our coal is approximately 60 percent of our national energy source, and currently Indonesia has an abundance of natural resources, then the price is quite efficient, quite cheap," he said in media gathering, Wednesday, May 29.

In addition, Boby said that coal commodities in the country are driving economic growth. So that it becomes one of the energy sources that cannot be replaced.

"Like it or not? But this is Indonesia's economic growth, one of which is from a fairly cheap energy source," he said.

According to Boby, the energy transition carried out is not 100 percent immediately, but starting with a pilot project, one of which is trilemma energy, which is a framework for adopting energy policies by considering energy resilience, environmental sustainability, affordable energy.

"Our national energy if we suddenly shut down a lot, what is our security energy like? Then the energy of affordability, prices for the community, because this is also public goods, we have to maintain this, yes, affordability," he said.

Boby said that to reduce the impact of emissions from this energy sector, the Ministry of Finance will coordinate with other ministries/agencies (K/L). There are technicalities that need to be formulated so that energy transition funding is beneficial while still paying attention to the trilema of energy.

Head of the Social Environment and Engineering Evaluation Division of PT. SMI (Persero) Gan Gan Dirgantara said that his party was trying a financing memoratorium aimed at increasing PLTU capacity to reduce carbon emissions.

"But we also opened financing for PLTU, which aims to retire faster. In terms of'sticks', it has been given from the OJK in a sustainable taxonomy in Indonesia," he said.

PT SMI (Persero) recorded working on 10 PLTU early retirement projects until the end of December 2023. The cumulative value of the project is IDR 28.5 trillion. Meanwhile, the cumulative financing commitment is IDR 6.1 trillion.