Saturday, September 23, 2023

Presidential Decree on Coal Phase-out Comes Together with EV Mandate

The Jakarta Globe
September 15, 2022 | 11:26 am
File photo: A government official shows electric vihicle charging station at the Technology Assessment and Application Agency (BPPT) in Jakarta on Dec. 15, 2018. (Antara)
File photo: A government official shows electric vihicle charging station at the Technology Assessment and Application Agency (BPPT) in Jakarta on Dec. 15, 2018. (Antara)

Jakarta. President Joko “Jokowi” Widodo has issued a decree on the Acceleration of Renewable Energy Development that provides guidelines to gradually stop the use of coal in power plants.

The presidential decree, which was signed on Tuesday, instructed state-run electricity company PLN to accelerate the expiry date for coal-burning power plants the company owns or leases from other providers.

“Coal-burning power plants should no longer exist by 2050,” according to the decree.

The construction of a new coal-fired power plant is prohibited unless it’s based on contracts signed before the decree was issued.


The decree aims to “reduce greenhouse emissions by 30 percent” within a decade.

In the decree, Jokowi instructed related ministers to formulate a “roadmap” for renewables and the coal phase-out.

The president also issue a separate instruction that obliges high-ranking central and regional government officials to use battery electric vehicles (BEV) in their operational duties and appointed Chief Investment Minister Luhut Binsar Pandjaitan to lead the transition.

The instruction applies to all cabinet members, state agency heads, the National Police chief, the Indonesian Military chief, the attorney general, the cabinet secretary, the presidential chief of staff,  governors, and mayors.

The BEVs can be procured “through purchases, leases, or the conversion of fossil fuel vehicles into battery electric vehicles” using state funding, according to the presidential instruction.

The BEV mandate for state officials came a month after the Transportation Ministry issued a decree legalizing the conversion of cars with internal combustion engines into BEVs at government-approved automobile repair shops.

But so far the government has not authorized a single repair shop capable of BEV conversion.

State-Owned Enterprises Minister Erick Thohir said on Wednesday he has instructed electricity company PLN to build more charging stations.

“I also asked [state-run oil company] Pertamina to provide charging services at their fuel stations,” Erick said.

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