Indonesian Political, Business & Finance News

In Japan, Bahlil Showcases Indonesian Coal in High Demand Worldwide

| Source: CNBC Translated from Indonesian | Energy
In Japan, Bahlil Showcases Indonesian Coal in High Demand Worldwide
Image: CNBC

Energy and Mineral Resources Minister Bahlil Lahadalia stated that demand for coal is currently increasing from various countries amid the threat of a global energy supply crisis.

He indicated that this demonstrates Indonesia’s coal dependency is strengthening despite existing energy transition programmes.

At the Indo-Pacific Energy Security Ministerial and Business Forum (IPEM) in Tokyo, Japan, Bahlil revealed that many countries are raising the volume of coal imports from Indonesia to secure their domestic energy needs amid current geopolitical tensions.

“Despite the Paris Agreement pushing for a transition away from coal, in reality many countries are now increasing their coal imports from Indonesia,” Bahlil explained at IPEM Tokyo.

According to him, Indonesia’s contribution is crucial in supporting global energy supply during the crisis. Indonesia currently supplies a dominant share of total coal commodity movements in the international market.

“Indonesia has demonstrated this commitment, including by sending 150 liquefied natural gas cargoes in 2025 to support global energy supply. Additionally, Indonesia also supplies approximately half of the coal traded globally,” Bahlil added.

Facing the uncertain global energy supply situation, Bahlil stressed that the government is also prepared to prioritise domestic needs if international cooperation is not mutually beneficial.

In the oil sector, one anticipatory measure being prepared is maximising the use of crude palm oil (CPO) for biodiesel production domestically to reduce dependence on imported oil.

“As an oil-importing nation, if we cannot secure our oil needs, then we have no choice but to utilise the energy potential available domestically, including increasing the proportion of crude palm oil converted into biodiesel,” he stated.

Alongside diversification of renewable energy sources, the government is ensuring it continues its energy transition commitment through developing environmentally friendly power plants. This policy aligns with President Prabowo Subianto’s directive to develop solar power plants.

“Indonesia is strongly committed to continuing to drive energy transition, including through the 100 GW solar power programme with short-term priorities including the replacement of diesel power plants with solar power plants,” he affirmed.

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