Japan’s biggest power generator JERA said on Friday it had sold its 14% stake in Indonesia’s PT Paiton Energy, which operates coal power plants, to a unit of energy company PT Medco Daya Abadi Lestari for an undisclosed sum.
The move comes as companies worldwide step up their efforts to offload coal-related assets amid pressure to reduce exposure to fossil fuels to cut harmful carbon dioxide emissions and slow climate change.
Paiton Energy owns and operates coal-fired power plants in Indonesia under a long-term power purchase agreement with PT Perusahaan Listrik Negara (PLN), the Indonesian national electricity power company.
“The decision to sell our stake was based on a comprehensive assessment of profitability and business environment among other factors, and not solely on a decarbonisation perspective,” a JERA spokesperson said.
JERA, a joint venture between Tokyo Electric Power Company Holdings Inc 9501.T and Chubu Electric Power Co Inc 9502.T, aims to achieve net zero emissions of carbon dioxide by 2050.