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December 17, 2025
Secretariat Launches Landmark Captive Power Study in Indonesia
Defined as electricity generated by private industries for their own use, the captive power sector accounts for nearly a quarter of Indonesia’s total installed electricity capacity and remains heavily dependent on coal. This reliance is driven by a range of structural and operational factors, including limited grid connectivity in industrial areas, as well as the need for a reliable and continuous electricity supply, particularly for metal smelters that require sustained heat for their production processes.
Integrating the transition of the captive power sector into national clean energy policies is therefore essential as part of a broader strategy to achieve substantial and sustained emissions reductions, as well as to support Indonesia’s long-term climate objectives.
Under the coordination of the Coordinating Minister for Economic Affairs (CMEA) and with support from the European Union (EU) through the EU–Indonesia Cooperation Facility (EU-ICF), the Secretariat completed the Captive Power Study Thematic Report. Prepared as a complement to the Comprehensive Investment and Policy Plan (CIPP) 2023, the study outlines a range of pathways for transitioning captive power systems from fossil fuels to cleaner energy sources within the broader framework.
In his opening remarks, Rachmat Kaimuddin, Vice Chair of the Energy Transition and Green Economy Task Force (Satgas TEH), highlighted the strategic importance of addressing emissions from captive power generation in achieving Indonesia’s net-zero emissions target by 2060.
“Indonesia has both a growth and a net zero ambition. This means the industrial sector using captive power must also decarbonize. But we need to ensure that the solutions are competitive and reliable—so Indonesia can continue its transition from an extractive economy to an industrialized economy while protecting the environment,” Rachmat said.
Head of the Secretariat, Paul Butarbutar, stated that Indonesia’s energy transition agenda encompasses not only emissions reduction but also the promotion of sustainable economic growth and the development of energy systems that are affordable, reliable, and accessible.
“Through a series of analytical studies, including the Comprehensive Investment and Policy Plan (CIPP), the Secretariat has identified key challenges and opportunities related to the transition of captive power. The Captive Power Study Thematic Report provides recommendations that can inform policy development and contribute to strengthening the framework for a just and orderly energy transition,” Butatbutar said.
He underscored that as awareness of the impacts of climate change continues to grow, consumers are increasingly demanding products produced through low-carbon processes, underscoring the importance of decarbonizing captive power.
Held in Jakarta, the launch event was attended by representatives from central and regional government institutions, member countries of the International Partners Group (IPG), state-owned enterprises, civil society organizations, and development partners.
“The event also marked the formal handover of the Captive Power Study Thematic Report from the Secretariat to the Coordinating Ministry for Economic Affairs, witnessed by representatives of International Partners Group (IPG) member countries.
In addition to the formal launching of the report, the event featured a panel discussion involving senior officials from the Ministry of Industry, the Ministry of Energy and Mineral Resources, and the World Resources Institute (WRI) Indonesia. Panelists examined how the study’s findings can be integrated into national and regional planning processes, highlighting the importance of stronger regulatory coordination, enhanced workforce skills, and more resilient local supply chains to ensure long-term economic benefits from the transition.
In closing, Dr Farah Heliantina, Assistant Deputy for Energy Transition Acceleration at the Coordinating Ministry for Economic Affairs, welcomed the publication of the report and expressed hope that its recommendations, as one of the government’s references, would strengthen national energy policies and planning for Indonesia’s future energy development.
“We hope the recommendations outlined in this report will serve as one of the useful references for the government, industry, and partners in accelerating Indonesia’s energy transition and strengthening our national energy planning,” Dr. Farah stated.
About the Just Energy Transition Partnership ()
The Just Energy Transition Partnership () is a collaborative partnership between the Government of Indonesia and international partners to support Indonesia’s efforts to accelerate a fair, inclusive, and accelerated transition from fossil fuels to clean energy. These efforts align with Indonesia’s development and climate goals. As of September 2025, international partners have pledged a total commitment of USD 21.4 billion.
Media Contact:
Fitri Wulandari
Communication Specialist
+62 811 865142
[email protected]
Link to study: https:///news/-reports-2025
Email: [email protected]
