Article

Indonesia's industrial sector increasingly relies on captive power plants, with capacity rising from 14 GW in 2019 to a projected 33 GW by 2024. This surge, primarily from fossil fuels, poses risks of significant greenhouse gas emissions and may hinder the transition to cleaner energy.

By 2024, emissions from these plants could reach 131 MtCO2, constituting 37% of the electricity sector's total emissions. The EU's Carbon Border Adjustment Mechanism, starting in 2026, may further threaten Indonesia's export competitiveness unless a transition to renewables occurs.