Indonesia is among the world’s top exporters of thermal coal, but like many other countries has said it will phase out its own coal-fired power plants as part of a plan to make its power generation carbon-neutral.
Indonesia, though—again like many other countries—has a need to increase its electricity production to satisfy a growing demand for power. Government forecasts expect power demand will grow by 4.9% each year through the end of this decade. The government in 2015 announced a program to develop as much as 35 GW of new power generation capacity within a few years, to both add to its existing installed generation and replace some of the output being lost as coal-fired and diesel-powered plants are retired.