Indonesian Political, Business & Finance News

Coal Distribution Stalls in South Sumatra: How Far Does It Impact the Power Supply?

| | Source: REPUBLIKA Translated from Indonesian | Energy
Coal Distribution Stalls in South Sumatra: How Far Does It Impact the Power Supply?
Image: REPUBLIKA

The South Sumatra Provincial Government’s policy, through Governor’s Instruction No. 500.11/004/INSTRUCTION/DISHUB/2025, which prohibits coal transport across public roads, is now facing serious scrutiny from various parties. The policy, effective from 1 January 2026, is seen not only as impacting transportation smoothness but also as potentially disrupting national energy resilience. Far from merely aiming to alleviate congestion and reduce infrastructure damage, the implementation of this policy is generating wider strategic consequences. Coal distribution, as the primary energy source for power plants, is beginning to face significant obstacles. Economic expert from Muhammadiyah University of Bengkulu, Surya Vandiantara, emphasises that the impact of this policy is no longer potential but has been tangibly felt on the ground. He mentions that coal distribution to at least nine Steam Power Plants (PLTU) in southern Sumatra is starting to be disrupted, even though PLTU remains the backbone of electricity supply in the area. “This is not just a concern. Supply disruptions have already occurred and are even forcing distribution dispensations. If this condition continues, the stability of the electricity supply is at very high risk of being disrupted,” Surya stated during his remarks in Jakarta on Tuesday (21/4/2026). He added that while the local government’s aim to maintain infrastructure quality and reduce congestion is understandable, the policy approach taken is deemed to inadequately consider the strategic aspects of the energy sector, which have broad implications up to the national level.

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