Government Continues to Align Energy Needs with Industrial Demand

The issue of coal supply security for national needs, particularly the electricity sector, was the main discussion at the Energy Hub Talkshow 2026 themed ‘Safeguarding Coal Supply for National Needs’. The forum brought together associations, the National Energy Council, mining observers, industry players, and academics to discuss coal policy direction amidst national energy needs and the energy transition agenda. Anggawira, Chairman of the Indonesian Energy, Mineral, and Coal Suppliers Association (ASPEBINDO), assessed that adjusting the Domestic Market Obligation (DMO) coal price is not a simple matter. According to him, an increase in coal prices for power plants could potentially drive up the basic cost of electricity supply, while the government has stated it will not raise electricity tariffs for the public. Currently, the DMO coal price for the national electricity sector is capped at USD 70 per tonne, whereas the DMO for the smelter, cement, and fertiliser industries is set at USD 90 per tonne. Anggawira believes the DMO pricing policy needs to be carefully positioned to avoid creating new burdens on the national electricity system. ‘If the DMO price is raised, the selling price of electricity will certainly be affected. Moreover, the government has already stated it will not make adjustments to electricity tariffs,’ Anggawira said in a written statement on Thursday, 9 July 2026. Satya Widya Yudha, a member of the National Energy Council, explained that the government is continuously developing a national energy management strategy to align with industrial needs and the direction of energy transition policy. He touched on the importance of implementing Government Regulation Number 40 of 2025 so that its execution can be inline with the expectations of industry players without neglecting the interests of national energy security. Satya explained that in the National Energy Policy (KEN), the coal energy mix in 2025 is around 41.5 percent, projected to remain stable until 2030 before starting to decline in 2040. This decline is linked to the assumption that large-scale coal-fired power plants (PLTU) will still be operating until around 2035, meaning emissions from the energy sector will remain quite high before gradually beginning to fall. ‘In the view of the National Energy Council, we are choosing decarbonisation. The goal is to maintain energy security while still paying attention to the availability of coal supply, so that an energy crisis is not created,’ said Satriyo.