Rolling Blackouts in Java Deal Heavy Blow to MSMEs

The wave of rolling blackouts hitting Java since early June 2026 has begun to trigger serious economic consequences, particularly for the Micro, Small, and Medium Enterprise (MSME) sector. Minister for MSMEs Maman Abdurrahman stressed that the disruption to electricity supply has hampered production activities and caused direct losses for small traders.

Speaking at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Monday (22/6), Maman highlighted the broad social and economic impact of the outages. He cited examples of traders who are heavily dependent on electricity to maintain product quality. "For instance, those selling ice; when the power goes out, the ice melts and they cannot trade. The same goes for frozen food traders and many others. So the social impact is actually widespread," Maman said.

Minister Maman urged PT PLN (Persero) to immediately conduct a total evaluation of the coal commodity supply chain management. This is crucial given that the majority of major power plants in Java still rely on coal-fired steam power plants (PLTU). He warned of the risk of a widespread total blackout if energy logistics management is not promptly improved. "The potential for a blackout like the one that occurred three years ago could happen again if supply chain management at PLN is not immediately addressed and properly organised," he asserted.

Coordinating Minister for Economic Affairs Airlangga Hartarto acknowledged that the electricity disruption significantly affects national economic stability. The government has coordinated with Minister of Energy and Mineral Resources Bahlil Lahadalia and the board of directors of PLN to find a swift solution. "The hope is that this can be resolved within June," Airlangga stated.

Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia highlighted that the coal supply issue is a recurring problem that previously occurred in 2022. He stressed the importance of strict oversight of contracts between mining companies and PLN. He noted that with 134 million tonnes of coal already contracted through to the middle of the year, there should be no significant supply constraints.

Separately, President Director of PT PLN (Persero) Darmawan Prasodjo explained that in addition to raw material supply factors, there were technical disruptions at two coal-fired power plants owned by Independent Power Producers (IPPs) in Java. These disruptions caused the plants to disconnect from the national electricity system. "We sincerely apologise for the disruption that has resulted in rolling blackouts in Java. Our teams have been immediately deployed to carry out repairs on the affected systems," Darmawan concluded in an official statement.