Jakarta (Indonesia Window) – The Indonesian Ministry of Energy and Mineral Resources has projected that domestic coal use in Indonesia would reach 166 million tons in 2022, an increase of 33 million tons compared to 133 million tons last year.

"Most of the coal produced is converted into electric power. In addition, it is also used in industries and households," the ministry’s secretary general Ego Syahrial said at the Indonesia Economic Outlook 2022 forum here on Wednesday (Jan. 26).

He said that the use of coal should also consider environmental issues, such as high carbon emissions.

The government promotes the downstreaming of coal, one of which is through the development of dimethyl ether as a substitute for LPG (liquefied petroleum gas) in order to reduce imports.

In addition, the Indonesian government also plans to deactivate coal-fired steam power plant owned by the state electricity company (PLN) and the private sectors based on a maximum contract of 30 years.

Coal-fired power plants will be replaced with renewable energy power plants. This program aims for Indonesia to achieve its carbon neutrality target by 2060.

By 2021, the national installed power plant capacity has reached 74 gigawatts. This year, Indonesia targets the installed capacity to reach 76 gigawatts.

Reporting by Indonesia Window