JAKARTA, Dec 5 (Reuters) - Indonesia is unlikely to move forward with a plan to retire the Cirebon-1 coal power plant early, although it is reviewing other coal-fired plants for early shutdown, its chief economic minister said on Friday.

The Cirebon deal has been seen as a test case for the early retirement of coal-fired power plants in developing countries under the Just Energy Transition Partnership (JETP), a G7 funding initiative.

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But after initially agreeing to close Cirebon in 2035 - seven years earlier than its lifespan - Indonesian authorities last year missed a key deadline and raised concerns about potentially higher costs for electricity subsidies.

Choosing to shut down older power plants was "based on technical considerations," Indonesia's Chief Economic Minister Airlangga Hartarto told a press conference in Jakarta, flanked by representatives of JETP partner nations.

"Cirebon is one of those that still has a long lifespan, and its technology is also critical, supercritical, and relatively better," he said, referring to so-called Clean Coal Technology at the plant. He added that the environmental impact of shutting down older, dirtier coal power plants would be bigger.

The JETP has distributed $3.1 billion in financing so far, Airlangga said, adding international partners remained committed to the programme, noting the total funding commitment for Indonesia had been raised to $21.4 billion from an initial $20 billion.

A number of projects worth a total of $5 billion are currently in the pipeline for financing, including the Saguling floating solar PV project, a transmission project in Sulawesi, and a wind power project in South Sumatra, Airlangga said.

It was not clear how soon the funds would be deployed.

Indonesia, which counts coal as one of its biggest export products, has pledged to reach net-zero greenhouse gas emissions by 2060.

Jakarta this year submitted more ambitious, self-determined emission cut targets by 2035 to the United Nations. The plan has been criticised by environmentalists as extending the life of coal assets, because it included the utilisation of Clean Coal Technology.

https://www.reuters.com/business/energy/indonesia-backpedals-retiring-cirebon-coal-power-plant-early-2025-12-05/