Indonesian Fossil Fuel Folly: How Miscalculation Take the Country Away from the Energy Revolution
The Indonesian government claims that an additional 75 Gigawatt of power stations are needed over the next ten years to meet the power needs of the country. In order to fulfill the need, the government estimates that they will need to build a power plant that can produce 35 gigawatt , over the next five years as the first step. The state owned enterprise on electricity, PLN, will build 15 gigawatt , or 43% of the plan, and the private sector will lead the development of the remaining. The new power plant will largely rely on coal, an energy source of which Indonesia has vast reserves. It would stimulate coal demand, increase consumption, and help the country’s growing economy. The President Director of PLN also states that coal is considered the cheapest power plant investment in the country. Last year, PwC responded to this assumption critically. Based on data on the Indonesian coal reserves and predictions of the coal consumption for the additional 20 gigawatt coal power