Captive power coal-fired powerplant (PLTU) is a coal powerplant owned by a company that is independent of the public power grid. This captive power PLTU is generally used for the exclusive needs of company operations in industrial areas. Its private status and being in protected industrial areas as national vital objects have made this captive power PLTU miss much attention from the public and regulations.

In Indonesia, investors and developers from China recently built many captive power plants as part of the Belt and Road Initiative (BRI). China itself in September 2021 announced its commitment to stop building captive power plants outside China’s territory as a step to advance the Green Belt and Road Initiative. However, there is still ongoing construction of a captive power plant in Indonesia's industrial area by China’s investors which does not get much attention from the public.

The construction of a captive power plant has negative impacts not only from an environmental standpoint but also from the economic sustainability and Indonesia’s ability to achieve the energy transition and meet the targets of the climate commitments that have been signed. Economic losses are obtained from the risk of stranded assets, increased cost of capital due to reduced investor attractiveness, as well as not accepted products by the international market. This loss will not only be suffered by Indonesia, but also by the Chinese government and investors who also potentially damage the reputation of their energy transition commitments. So far, financial institutions in China have experienced financial losses from continuing to push for coal power plant development.

The large potential for the development of industrial estates with renewable energy in Indonesia adds to the urgency of stopping the construction of captive power plants. Weak regulations for the transition from coal are challenges to phase out captive power plants in Indonesia.