Bahlil: Indonesia to Retain Coal to Maintain Electricity Tariffs

Jakarta (ANTARA) - Minister of Energy and Mineral Resources Bahlil Lahadalia has emphasised that the government will continue to utilise coal for steam power plants (PLTU) to maintain energy efficiency and the affordability of electricity tariffs for the public. Speaking at an event hosted by the IPB Alumni Association in Jakarta on Saturday, Bahlil stated that Indonesia possesses substantial coal reserves, making its utilisation necessary amid global energy security dynamics. He argued that Indonesia cannot hastily abandon coal, particularly as several advanced countries are reopening options for fossil fuel use. According to Bahlil, both the United States and a number of European countries are now resuming coal utilisation to safeguard their domestic energy security. “The US is now opening coal options. In Europe, they are opening coal options; there are requests to us for 20 million tonnes per year,” he said. He assessed that Indonesia must prioritise efficiency and national interests in determining the direction of its energy transition. Bahlil emphasised that coal utilisation remains necessary as part of the strategy to maintain stability in national energy supply and prices. “I have decided; I say let’s just proceed with coal. This is about survival mode. We are talking about efficiency. We must not sacrifice our people with high electricity prices,” he stated. The Ministry of Energy and Mineral Resources records that national coal production for 2025 reaches 790 million tonnes. This realisation is down 5.5 percent compared to the 2024 achievement of 836 million tonnes, but still exceeds this year’s production target of 739.6 million tonnes. Of the total production, approximately 514 million tonnes or 65.1 percent are directed to export markets. Meanwhile, fulfilment of domestic needs or domestic market obligation (DMO), both for the electricity sector and non-electricity, reaches around 254 million tonnes or 32 percent of total production. The remaining production reserved as coal stock until the end of 2025 is recorded at 22 million tonnes or about 2.8 percent of national total production.