In May 2021, Indonesia’s biggest utility company, Perusahaan Listrik Negara (PLN), pledged to phase out fossil fuels by 2060 in order to achieve carbon neutrality. The announcement marks a dramatic shift in the country’s electricity policy that has long been dependent on fossil fuels, especially coal.

It is a sign that decisions by major lenders – including Japan, South Korea and the Asian Development Bank – to divest from coal have severely restricted the country’s options for financing coal plant infrastructure.

The destruction of carbon sinks in forest and carbon-rich peatlands are currently the biggest contributor to Indonesia’s carbon emissions. The energy sector will surpass these as the largest contributor to Indonesia’s carbon emissions by 2026 to 2027.

Read the full article on the Channel News Asia website, featuring Dr Abidah Setyowati