Article

The capacity of captive power plants in Indonesia is set to grow from 14 GW in 2019 to 33 GW by 2024, primarily driven by fossil fuel sources. This increase poses a risk of heightened greenhouse gas emissions, with projections indicating emissions could reach 131 MtCO2 by 2024, making up 37% of the electricity sector's emissions.

The EU will implement the Carbon Border Adjustment Mechanism in 2026, potentially impacting Indonesia's export competitiveness. Without a transition to cleaner energy, particularly in industries like nickel and aluminum, Indonesia risks long-term economic consequences.