Indonesia abandons coal plant closure promise as financial and political pressures mount

Indonesia has officially abandoned its commitment to shut down the Cirebon-1 coal-fired power plant by 2035, marking a significant retreat from the country’s climate pledges. Chief Economics Minister Airlangga Hartarto announced in December that closing the 660-megawatt facility seven years ahead of schedule would be “unfeasible,” citing the plant’s relatively recent construction in 2012 and its “better” emissions technology compared to older facilities.

The decision exposes the challenging reality facing Indonesia’s energy transition efforts. Environmental analysts and advocacy groups warn that the government’s continued protection and subsidization of coal infrastructure makes early plant closures prohibitively expensive, even as the country actively seeks international climate funding for such initiatives. This creates a contradictory situation where Indonesia requests global financial support for coal retirement while maintaining policies that make these closures economically difficult.

Minister Hartarto defended the reversal by emphasizing technical considerations, arguing that shutting down newer, more efficient plants makes less environmental sense than retiring older, dirtier facilities first. However, critics view this as symptomatic of deeper political and financial resistance to moving away from coal dependency—a resistance that could seriously undermine Indonesia’s broader decarbonization goals.

The Cirebon-1 case was considered a test for Indonesia’s ability to transition away from coal power, making its failure particularly concerning for the country’s climate commitments. As global climate financing becomes increasingly competitive and scrutinized, Indonesia’s mixed signals on coal retirement could complicate future funding efforts and damage its credibility in international climate negotiations.