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Advancing Clean Metals

Decarbonizing Captive Power in Indonesia’s Nickel and Aluminum Industries

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The scale of Indonesia’s nickel and aluminum processing has established the country as one of the key players in critical mineral downstreaming. However, this industrial expansion is increasingly powered by off-grid, coal-fired captive power — posing a significant challenge to Indonesia’s climate commitments and long-term competitiveness.

This report presents new analysis on the growing role of captive power in Indonesia’s mineral sector. An RMI-developed database, which compiles captive power capacity data from government and public sources, shows that Indonesia’s captive power capacity has more than doubled over the past five years, reaching 22.9 GW in 2024. Over 81 percent of this capacity is coal-fired, operating largely outside the oversight of the state-owned utility, PLN.

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