Dismissing Coal Sunset Amid Energy Transition Movement

Coal remains the largest energy industry, especially for power generation, steel-making, and cement. For this reason, Indonesia needs to study the impacts of the energy transition, particularly by phasing out the utilization of coal.

Ibeth Nurbaiti

18 Des 2023 - 20.36
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Dismissing Coal Sunset Amid Energy Transition Movement

Illustration - The coal loading and unloading activities./Bisnis/Photo: indikaenergy.co.id.

Bisnis, JAKARTA — The government's ambition to make Indonesia a global leader in energy transition poses a dilemma, especially for the sustainability of the domestic coal industry. The increasing global push for countries to abandon coal and switch to cleaner and low-carbon energy sources puts significant pressure and challenges on the coal industry.

On the other hand, coal has been the backbone of Indonesia's primary energy, even serving as the lifeline for the state electricity company PT Perusahaan Listrik Negara (PLN). Until now, coal's contribution as the primary energy source in Indonesia's power system has reached 67 percent.

However, the coal industry is increasingly cornered due to unfavorable conditions. With the projected significant decline in global coal consumption in line with the energy transition push, commodity prices are affected, showing a continuous downward trend.

Recently, the International Energy Agency (IEA) announced, for the first time, a decline in global coal demand with projected correction until 2026. The IEA estimates that global coal demand will decrease by 2.3 percent in 2026 compared to demand in 2023. 

Cek Berita dan Artikel yang lain di Google News dan WA Channel
Editor: Yusuf Waluyo Jati
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Dismissing Coal Sunset Amid Energy Transition Movement

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