State-owned electricity company PLN has axed a project to develop a coal-fired power plant as the country chases its long-delayed commitments to cut carbon dioxide emissions.
PLN vice president of corporate communications Gregorius Adi Trianto confirmed that the company had canceled its plans to build a 1-gigawatt (GW) plant in Indramayu, West Java.
“PLN took the initiative to stop borrowing [funds for the project] as part of PLN's efforts to reach [our] carbon neutral goal by 2060,” Gregorius said on Friday in a reply by text message to The Jakarta Post.
The project’s termination came after Japan announced that it had canceled a plan to provide a loan worth 1.7 billion yen (US$12.55 million) for developing the Indramayu plant amid growing international criticism of coal power plants, a major source of greenhouse gas emissions.
“We have decided not to proceed with these [projects] as the subject of yen loans,” press secretary Hikariko Ono of Japan’s foreign ministry told a press conference on Thursday, as quoted by Nikkei Asia.