China and Japan, two financial giants backing Indonesia’s coal sector, can play a critical role in the country’s transition to green energy by providing technology for the transition, the Institute for Energy Economics and Financial Analysis (IEEFA) said in a statement.

Energy Finance Analyst Elrika Hamdi said that whilst Indonesia is setting its eyes on green transition, its power utility company, Perusahaan Listrik Negara (PLN), is “stuck with excess capacity from coal-fired power plants.”

“The result is alarming. There will be a 50-60% reserve margin in PLN’s main grids, accompanied by mounting debt and independent power producer lease liabilities for the state utility and a shrinking space for renewable energy to grow,” Hamdi said.

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