Indonesia is taking bold steps towards a cleaner energy future. The newly issued Permen ESDM No. 10/2025 outlines a clear roadmap to reduce emissions, retire coal-fired power plants early, and boost renewable energy—marking a major shift in national energy policy.
What’s Inside Indonesia’s New Energy Regulation (Permen ESDM 10/2025)
Indonesia has taken another step forward in the push for clean energy. The government recently rolled out a new rule—Permen ESDM No. 10 of 2025—which lays out a roadmap for moving the country’s electricity sector towards greener, more sustainable sources. This regulation was signed by Minister of Energy and Mineral Resources Bahlil Lahadalia on April 10, 2025, and officially started on April 15.
One of the biggest takeaways from this new rule is about the early retirement of coal-fired power plants (PLTU). It’s not something that can just be done overnight. The regulation clearly says this can only happen if there’s proper funding support. And before anything is shut down, each power plant must go through a detailed review process.
This job is handed over to PLN (Perusahaan Listrik Negara). They’re given up to six months to carry out the study after getting the green light from the Minister. The review has to look at everything—from how the plant works, the legal stuff, and business impact, to where the money will come from and how decisions are made.
But that’s not all. The government also wants to make sure that shutting down these plants won’t mess with the stability of the national electricity system. They’ll check whether this could make electricity more expensive or cause problems for people who rely on it every day. It’s all part of following the idea of a just energy transition—a shift that’s fair to everyone, especially workers and communities affected by it.
What Else is in the Regulation?
Besides the coal plant retirement part, the regulation outlines 9 major steps Indonesia plans to take to shift to cleaner electricity:
| Biomass Cofiring in Coal Plants | Mixing biomass with coal to reduce emissions while still using existing power plants. |
| Cutting Down on Diesel | Replacing diesel-powered plants with renewable energy sources or switching them to natural gas. |
| Upgrading Old Power Plants | Adding new tech to existing fossil fuel plants, like carbon capture systems or switching to green hydrogen and ammonia to lower emissions. |
| No More New Coal Power Plants | The government is putting the brakes on building new coal plants—except for special cases that are really needed and come with low emissions. |
| Pushing for Solar, Wind, and Other Renewables | Getting more renewable energy sources like solar and wind into the mix, faster. |
| Producing Green Hydrogen and Ammonia | Using clean energy to make green hydrogen and ammonia—both are future fuels that don’t produce pollution. |
| Exploring Nuclear Power | Looking into nuclear power as a long-term clean energy option, as long as it meets strict safety rules. |
| Smarter Electricity Grids | Building a smart grid system to make electricity more stable, efficient, and easier to manage across all islands. |
| Speeding Up the Closure of Coal Plants | If all the right conditions are met, including enough funding, some coal plants will be closed earlier than planned to help cut emissions sooner. |
This regulation is a big step in showing how serious Indonesia is about reducing carbon emissions and switching to cleaner power. It’s not just about shutting down coal plants—it’s about doing it the right way, with careful planning, enough money, and support for the people affected by the changes.
As Indonesia moves forward with Permen ESDM 10/2025 to guide a fair and well-planned energy transition, Energy Academy Indonesia (ECADIN) shares the same commitment to creating a greener future by accelerating energy transition and promoting just sustainable growth. We’re proud to contribute through research, innovation, advocacy, and by connecting expertise, knowledge, business actors, and financing means. We value our diversity and focus on creating an inclusive environment where our team and partners can flourish.
References:
