Client Alert – MEMR Reg 10/2025: Charting Indonesia’s Early Retirement of Coal-Fired Power Plants and Energy Transition Strategies
The Minister of Energy and Mineral Resources (MEMR) recently issued MEMR Regulation No. 10 of 2025 on the Roadmap for the Energy Transition in the Electricity Sector (MEMR Reg 10/2025) which marks a pivotal advancement in Indonesia’s pursuit of net zero emissions in the electricity sector. The regulation’s strength lies in its structured approach to facilitate the early retirement of coal-fired power plants (CFPPs) and lay out broader strategies for energy transition implementation in Indonesia to reach net zero by 2060.
At its core, the regulation acknowledges that financial viability and impact, legal safeguard, and reliability of the electricity system are central to the success of CFPP early retirement initiatives. MEMR Reg 10/2025 seeks to overcome the challenges surrounding CFPP early retirement through a multi-faceted approach that emphasizes on the importance of funding availability and its implications to the electricity generation costs (BPP), mandates a comprehensive study covering legal, technical, commercial, corporate governance and business judgement rules aspects that will serve as the foundation for inter-ministerial approvals and evaluation procedures, as well as clarifies the scope of assignment from MEMR to PLN for the implementation of the CFPP early retirement initiatives.
Please see our newsletter here: Client Alert – MEMR Regulation 10 of 2025
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