Government Outlines Strategy to Prevent Recurrence of Power Outages
The government has outlined a series of measures to safeguard the national electricity system and prevent a recurrence of the recent power outages affecting Java and Bali. The strategy focuses on strengthening primary energy supplies, enhancing power plant readiness, and accelerating the transition to new and renewable energy (EBT).
M. Qodari, Head of the Government Communication Agency (Bakom), stated that the Ministry of Energy and Mineral Resources (ESDM) has instructed PT PLN (Persero) to ensure the availability of all primary energy needs according to the required quantity and specifications. “The government, through the Ministry of ESDM, has instructed PT PLN to ensure the availability of primary energy according to the required amount and specifications, strengthen supply chain management, improve system operation readiness, and accelerate the completion of main power plant maintenance,” Qodari explained in an official statement on Thursday.
According to Qodari, these steps not only accelerate the recovery of the electricity system in Java following the disturbance but also strengthen coordination among stakeholders to maintain supply stability. The Directorate General of Electricity at the Ministry of ESDM convened all power generation business entities, both from the PLN Group and Independent Power Producers (IPP), on 25 June 2026 to reinforce a joint commitment to maintaining operational performance, particularly in the Java-Bali system.
Looking ahead, Qodari said the government will tighten supervision and risk mitigation across the entire primary energy supply chain, from power plant maintenance planning and energy reserve readiness to operational coordination among stakeholders. “The government will continue to strengthen supervision and risk mitigation across the entire primary energy supply chain, from power plant maintenance planning, energy reserve readiness, to operational coordination among stakeholders, so that similar conditions can be prevented as early as possible and the public continues to receive stable and sustainable electricity services,” he said.
Qodari also noted the impact of global economic dynamics, energy price fluctuations, and the Rupiah exchange rate against the US Dollar on the electricity sector. The Cost of Electricity Provision (BPP) is influenced by macroeconomic assumptions, particularly the exchange rate, the Indonesian Crude Price (ICP), and inflation. He explained that increases in these variables could potentially raise the BPP, as some operational cost components, including fuel purchases and private electricity purchases, still use US Dollar-based formulas, and foreign loan repayments in foreign currency also affect operational costs.
However, Qodari assured that this situation will not disrupt electricity services, as the government has allocated electricity subsidies to accommodate these macroeconomic changes. To anticipate the impact of these changes, the government and PLN have implemented mitigation measures such as operational efficiency, exchange rate risk management or hedging, optimising the use of domestic primary energy, and diversifying the energy mix. He confirmed that since 21 June 2026, there have been no further power outages due to supply shortages, with available supply capacity recorded at 28,625 MW against a peak load of 27,929 MW, leaving an operating reserve of 695 MW.
In addition to strengthening the existing system, the government is preparing to develop power generation capacity through PT PLN’s Electricity Supply Business Plan (RUPTL) for 2025-2034. The plan includes the addition of 69.5 Giga Watts (GW) of new generation capacity, with 42.6 GW, or 61 percent, coming from new and renewable energy sources. Energy storage systems, such as batteries and pumped storage hydropower, will contribute 10.3 GW, or 15 percent. Fossil-fuelled power plants will account for the remaining 16.6 GW, or 24 percent, and will be dominated by gas-fired plants to maintain system flexibility and reliability.