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Indonesia Waters Down Its Year-Old Ban on New Coal Power Plants

  • Rule introduces benchmark prices for green electricity tariffs
  • Govt may use state budget to help fund early coal retirement
An excavator loads coal at Cirebon Port in West Java, Indonesia.
An excavator loads coal at Cirebon Port in West Java, Indonesia.Photographer: Dimas Ardian/Bloomberg

Companies in Indonesia can develop new coal power plants under certain conditions, according to a new regulation that relaxes previous commitments to phase out development of the world’s dirtiest fuel in pursuit of a 2060 net-zero target. 

According to a presidential regulation that took effect on Sept. 13, companies can develop new coal power under three circumstances: if the plants will power refineries or metal smelters; if they’re nationally strategic projects; or if they can commit to cutting greenhouse gas emissions by 35% within 10 years of operation.