Does Presidential Regulation No. 112/2022 support the transition away from coal-fired power plants?

CELIOS released a press statement titled “Does Presidential Regulation 112/2022 Support the Transition Away from Coal-Fired Power Plants?” on October 4, 2022. The document analyzes Presidential Regulation No. 112 of 2022 on the Acceleration of Renewable Energy Development for Electricity Supply. Although its aim is to accelerate renewable energy (EBT), CELIOS found several provisions that contradict the 2060 Net Zero Emission target, particularly Article 3 point 4, which allows coal-fired power plants to continue operating in industrial zones until 2050.

CELIOS’ review shows that Presidential Regulation 112/2022 focuses more on regulating investment in renewable energy, but fails to specify overall renewable energy mix targets, prioritize electricity procurement from renewable sources, or define the role of the public as electricity consumers. CELIOS Executive Director Bhima Yudhistira questioned whether the regulation is linked to negotiations over international energy transition funding, such as the JETP funding from G7 countries.

In addition, CELIOS highlighted the inconsistent use of the phrase “may be replaced” in Article 3 point 6, which means the government is not required to use renewable energy to meet electricity demand. The report concludes that neither Presidential Regulation 112/2022 nor the Draft Renewable Energy Law (RUU EBT) currently being prepared has a detailed roadmap, making a complete overhaul of the clean energy transition framework necessary.

CELIOS released a press statement titled “Does Presidential Regulation 112/2022 Support the Transition Away from Coal-Fired Power Plants?” on October 4, 2022. The document provides a critical analysis of Presidential Regulation No. 112 of 2022 on the Acceleration of Renewable Energy Development for Electricity Supply. While the regulation aims to accelerate renewable energy (EBT), CELIOS found certain provisions to be contradictory to Indonesia’s 2060 Net Zero Emission target, particularly Article 3 point 4, which allows coal-fired power plants (PLTUs) to continue operating in industrial zones until 2050.

CELIOS’ review also indicates that the regulation focuses more on EBT investment rather than outlining overall EBT mix targets, prioritization of electricity procurement from renewables, or the role of the public as electricity consumers. CELIOS Executive Director Bhima Yudhistira questioned whether the regulation is linked to international energy transition funding negotiations, such as the Just Energy Transition Partnership (JETP) from G7 countries.

Additionally, CELIOS highlighted inconsistencies, such as the use of the phrase “may be replaced” in Article 3 point 6, implying there is no obligation for the government to use renewables to meet electricity demand. The report concludes that both Presidential Regulation 112/2022 and the Draft Renewable Energy Law ( RUU EBT ) lack a clear and detailed roadmap, indicating the need for a complete overhaul of Indonesia’s clean energy transition framework.