In response to the global challenge of the climate crisis and the growing demand for clean energy, PLN Nusantara Power (PLN NP) has made a historic move as a pioneer in Indonesia's carbon market.
More than just a participant, this subsidiary of PT PLN (Persero) has positioned itself as a key driver of the domestic carbon trade while reinforcing its commitment to achieving Net Zero Emissions (NZE) by 2060 — or even sooner.
Entering the Carbon Market: PLN NP Makes History
PLN NP took a groundbreaking step in September 2023 when the Indonesia Carbon Exchange was officially launched by the Indonesia Stock Exchange (IDX). Through its flagship project, the Muara Karang Block 3 Combined Cycle Power Plant (PLTGU), the company sold over 11,500 tons of CO₂ worth IDR 625 million in just two months. This early participation marked PLN NP’s entry into the country's carbon trading ecosystem.
In 2024, PLN NP built on this momentum by expanding its carbon projects. Carbon sales increased to 39,000 tons of CO₂, generating over IDR 1.6 billion, thanks to the inclusion of new initiatives such as the Muara Tawar Add-On #2 project.
By 2025, the company took an even more aggressive step — not only expanding its projects within the country but also making its international debut through IDX Carbon International. The results were significant: in the first quarter of 2025 alone, PLN NP sold 331,000 tons of CO₂ from the Arun Peaker project, with total transactions valued at IDR 12.2 billion.
"The market has responded very positively because the emissions reductions we’ve achieved are real and verified. This proves that carbon trading is not just a formality — it is a tangible instrument in the energy transition," said Komang Parmita, Director of Gas-Fired Power Plant Operations at PLN NP, when met at the Seminar on Carbon Business Upscaling Strategies (28 April).
Concrete Steps Toward Energy Transition
PLN Nusantara Power’s involvement in the carbon market is not merely a business endeavor—it is an integral part of the company’s broader strategy for energy transition. The company has implemented a range of concrete initiatives aimed at reducing carbon emissions, both from existing power plants and through the development of renewable energy sources.
As of 2024, PLN NP has successfully reduced approximately 17 million tons of CO₂ compared to the Business as Usual (BaU) scenario. This reduction has been achieved through various key programs, including:
- Energy efficiency improvements via digital power plant systems (ICORE) and A-BOOT (Advanced Boiler Optimization and Tuning) technology, resulting in an emissions reduction of 0.9 million tons of CO₂;
- Modernization of coal-fired power plants to supercritical and ultra-supercritical technologies (such as Jawa 7 and Jawa 8), which cut emissions by 2.2 million tons of CO₂;
- Biomass co-firing at 22 power generation sites, contributing to a reduction of 0.9 million tons of CO₂;
- Gas combined cycle systems, which capture and utilize waste heat to produce additional electricity—such as at the 500 MW Muara Karang plant—leading to an emission reduction of 8.1 million tons of CO₂;
- Renewable energy sources, such as hydroelectric and solar power plants (notably in Cirata and Brantas), which have reduced emissions by 4.7 million tons of CO₂ since 2020.
Paving the Way for a Clean Energy Future
PLN Nusantara Power reaffirms its commitment not only to follow global trends, but to lead the direction of change. On the same occasion, Abdan Hanif, Executive Vice President of Corporate Business Development and Investment at PLN, emphasized that PLN's participation in the carbon market is part of its active role as both regulator and key player in the energy transition.
“We want to ensure that incoming investments for emission reduction projects can be integrated into Indonesia’s green economy. We bear a significant responsibility to deliver clean, affordable, and sustainable energy,” he stated.
Through carbon trading and innovations in low-emission power generation, PLN NP is not only creating economic value but also acting as a driving force in Indonesia’s journey toward a greener future. These actions demonstrate that the national energy sector is ready to transform and play an active role in achieving net zero emissions by 2060—or even sooner.
