Indonesia's accelerated coal-fired power phase-out plan hinges on private-sector and international partners financial support, the country's energy ministry said, after issuing further guidance last month.

Indonesian energy ministry ESDM published a ministerial regulation in early April outlining the criteria and processes for the early retirement of coal-fired power plants. But the plan will not be carried out if there is no clarity over funding for its energy transition efforts, in which case Jakarta will continue to prioritise domestic energy production, including through fossil-based sources, ESDM said this week.

The Indonesian government will not use its state budget or funds from state-owned utility PLN to fund the early retirement of coal-fired plants, ESDM said.

The new regulation details the evaluation processes for retiring coal-fired plants early, and emphasises the need for financial support from private-sector or international partners to achieve an accelerated phase out. Policy makers will evaluate the impact of a plant's retirement on the country's electricity grid, power supply and electricity tariffs, among other factors, when considering its phase out, ESDM said.

It will also take into account aspects of the Just Energy Transition Partnership (JETP) climate financing pact signed with rich nations in 2022, such as the livelihood of employees affected by the phase-out, as well as a plant's capacity, age, utilisation, greenhouse gas emissions and economic value.

The availability of foreign and domestic technological support will also be considered; according to ESDM.

US president Donald Trump's decision to withdraw the US from the JETP raised concerns earlier this year on whether Indonesia could stick to its energy transition policies, but the country recently secured $60mn in JETP funding to develop a solar project.

State-owned utility PLN will be tasked with studying the technical, legal, commercial and financial aspects of decommissioning plants that are put forward for early retirement, including funding sources. It will have to submit a report to the ministry no later than six months from the date a plant is identified for decommissioning, ESDM said.

The share of renewables in Indonesia's power mix is expected to rise to around 21pc by 2030 and 41pc by 2040, according to think-tank Ember.

By Antonio delos Reyes