Holiday Ayo - President Joko Widodo (Jokowi) has banned the construction of a coal-based fired power plant (PLTU). This is a form of the Government's seriousness in encouraging more environmentally friendly energy.

The prohibition is contained in Presidential Regulation (Perpres) Number 112 of 2022 concerning the Acceleration of the Development of Renewable Energy for the Provision of Electricity.

Article 3 Paragraph 1 of the Presidential Regulation explains, in the context of the energy transition in the electricity sector, the minister prepares a roadmap for accelerating the termination of the PLTU operational period as outlined in the sectoral planning document.

Then, in Paragraph 2, it is stated that the preparation of the roadmap as referred to in Paragraph 1 is carried out after coordinating with the minister in charge of government affairs in the field of state finance and the minister in charge of government affairs in the field of state-owned enterprises.

In Paragraph 3 it is written, the roadmap for acceleration as referred to in Paragraph 1 at least contains (a) reduction of PLTU greenhouse gas emissions, (b) strategy for accelerating the termination of the PLTU operational period, and (c) alignment between various other policies.

Paragraph 4 states that the development of new PLTUs is prohibited except for (a) PLTUs that have been stipulated in the Electricity Supply Business Plan prior to the enactment of this Presidential Regulation, or (b) PLTUs that meet the following requirements:

1. Integrated with industries that are oriented towards increasing the added value of natural resources or are included in National Strategic Projects that have a major contribution to job creation and/or national economic growth

2. Committed to reducing greenhouse gas emissions at least 35% (thirty five percent) within a period of 1O (ten) years since the PLTU operates compared to the average PLTU emissions in Indonesia in 2021 through technology development, carbon offsets, and /or renewable energy mix, and

3. Operate no later than 2050.

Furthermore, in Paragraph 5 it is written, in an effort to increase the proportion of renewable energy in the electrical energy mix, PT PLN (Persero) accelerates the termination of (a) own PLTU operation, and/or (b) Power Purchase Agreement (PJBL) contract. PLTU developed by the Power Generation Developer (PPL) taking into account the conditions of supply and demand for electricity.

Efforts to encourage environmentally friendly energy are often conveyed by Jokowi. He once said that the government's policy in transitioning to new and renewable energy guarantees investment certainty.

Jokowi said he would encourage early retirement or early retirement of PLTU in Java and Sumatra. Furthermore, he wants to encourage the transition to renewable energy such as geothermal and solar power.