JETP Secretariat Launches Captive Power Study to Support Indonesia’s Decarbonization Drive

MORE ARTICLES

Ecobiz.asia — The Secretariat of Indonesia’s Just Energy Transition Partnership (JETP) on Wednesday (Dec. 17, 2025) launched a thematic study aimed at accelerating the decarbonization of the country’s captive power sector, which currently accounts for nearly a quarter of national installed electricity capacity and remains heavily reliant on coal.

The Captive Power Study Thematic Report provides an analytical framework and policy recommendations to support the transition of electricity generated by private industries for their own use toward cleaner energy sources, in line with Indonesia’s long-term climate targets.

The study was completed under the coordination of the Coordinating Ministry for Economic Affairs (CMEA), with support from the European Union through the EU–Indonesia Cooperation Facility (EU-ICF), and serves as a complement to the Comprehensive Investment and Policy Plan (CIPP) 2023 within the JETP framework.

Read also:  Southeast Asian Climate Groups Urge World Bank, IMF to Back Regenerative Economy

Vice Chair of the Energy Transition and Green Economy Task Force (Satgas TEH), Rachmat Kaimuddin, said emissions from captive power generation must be addressed to meet Indonesia’s net-zero emissions target by 2060 without undermining industrial competitiveness.

“Indonesia has both a growth and a net zero ambition. This means the industrial sector using captive power must also decarbonize. But we need to ensure that the solutions are competitive and reliable—so Indonesia can continue its transition from an extractive economy to an industrialized economy while protecting the environment,” Rachmat said.

Read also:  IATA Warns EU ETS Expansion Could Undermine Global Aviation Carbon Scheme

The report identifies structural and operational factors behind the continued reliance on coal, including limited grid connectivity in industrial areas and the need for stable and continuous power supply, particularly for energy-intensive industries such as metal smelters.

Head of the JETP Secretariat Paul Butarbutar said the energy transition agenda goes beyond emissions reduction and must also support sustainable economic growth and energy security.

Read also:  Indonesia Targets E20 Gasoline Blend by 2027–2028, Eyes E50 to Cut Fuel Imports

“Through a series of analytical studies, including the Comprehensive Investment and Policy Plan, the JETP Secretariat has identified key challenges and opportunities related to the transition of captive power,” Butarbutar said.

“The Captive Power Study Thematic Report provides recommendations that can inform policy development and strengthen the framework for a just and orderly energy transition.”

He added that growing awareness of climate change is increasing demand for products produced through low-carbon processes, making the decarbonization of captive power increasingly important for Indonesia’s industrial competitiveness. ***

LATEST STORIES

MORE ARTICLES

Beyond the Haze: Why the Singapore-Indonesia Value Chain Demands Real Mutual Accountability

By: Riza Suarga (Chairman Indonesia Carbon Trade Association/IDCTA)  Ecobiz.asia - Singapore’s haze situation has recently been linked by Prime Minister Lawrence Wong to forest and...

Indonesia Targets 2027 Grid Code Revision to Support Renewables, Battery Storage

Ecobiz.asia – Indonesia plans to issue a revised grid code in 2027 to enable greater integration of renewable energy and battery storage while maintaining...

Philippines to Develop National Carbon Market Framework to Attract Investment

Ecobiz.asia – The Philippines will develop a national carbon market policy framework to regulate carbon credit projects and transactions, as the government seeks to...

PLN EPI Partners With Chinese Firm to Explore Waste-to-Energy Projects

Ecobiz.asia – Indonesia’s PT PLN Energi Primer Indonesia (PLN EPI) has partnered with PT Geoenviron Engineering Technology Indonesia (GETI), a subsidiary of China’s Beijing...

Singapore’s First Resources Says Many Fire Hotspots Were Outside Its Operating Areas

Ecobiz.asia – Singapore-listed palm oil producer First Resources Limited says many fire hotspots detected near its concessions in West Kalimantan were outside its operating...

TOP STORIES

ADM Capital Buka Peluang Pembiayaan Karbon di Riau, Integritas Proyek Jadi Kunci

Ecobiz.asia – Pengelola investasi ADM Capital menjajaki peluang pembiayaan proyek karbon di Riau setelah mulai menilai sejumlah proyek di pasar karbon sukarela di Kalimantan. Investment...

Calon Pembeli Internasional Menunggu, Riau Minta Percepatan Registrasi Program Karbon ART-TREES

Ecobiz.asia – Pemerintah Provinsi Riau meminta pemerintah pusat mempercepat registrasi program karbon hutan GREEN for Riau melalui standar Architecture for REDD+ Transactions–The REDD+ Environmental...

Selandia Baru Lanjutkan Program Energi Terbarukan di Maluku, Target Kurangi Ketergantungan Bahan Bakar Fosil

Ecobiz.asia – Program pengembangan energi terbarukan di Provinsi Maluku memasuki fase kedua melalui kemitraan Pemerintah Selandia Baru dan Kementerian Energi dan Sumber Daya Mineral...

Kabar Melegakan! Hotspot Terus Turun Jadi 93 Titik, Kemenhut Pastikan Tetap Siaga Kendalikan Karhutla

Ecobiz.asia — Penurunan jumlah titik panas (hotspot) dengan tingkat kepercayaan tinggi di Indonesia menjadi 93 titik pada Senin (26/10/2026), dari 147 titik sehari sebelumnya,...

PLTS Terapung Karangkates Capai 70% Konstruksi, Bidik Produksi Listrik Perdana Desember

Ecobiz.asia -- PT PLN Nusantara Power (PLN NP) mencatat progres konstruksi infrastruktur Pembangkit Listrik Tenaga Surya (PLTS) Terapung Karangkates di Kabupaten Malang, Jawa Timur,...