Indonesian Political, Business & Finance News

Strengthening the foundations of Indonesia's energy security

| Source: ANTARA_ID Translated from Indonesian | Energy
Strengthening the foundations of Indonesia's energy security
Image: ANTARA_ID

Jakarta (ANTARA) - Experience from various countries shows that large-scale electricity disruptions are almost always triggered by a series of interconnected problems. Disruptions in primary energy supply, weak inter-agency coordination, limitations in transmission networks, and extreme weather are among the triggers that ultimately have a broad impact on society. Therefore, building a reliable electricity system cannot rely solely on the capability of the electricity operator, but requires cooperation from all stakeholders.

In Indonesia, the Government under President Prabowo Subianto is required to always ensure the availability of coal and fuel oil for PLN’s power plants. The supply of primary energy is the main foundation for the reliability of the national electricity system, so it must become a strategic agenda led and supervised directly by the government.

This also underscores that electricity is a cross-sectoral matter. PLN is indeed responsible for operating power plants, transmission networks, and distribution. However, the success of carrying out these tasks is highly dependent on the smooth supply chain of coal, fuel oil, energy policies, logistics management, and coordination across various ministries and institutions. Therefore, PLN must work with various stakeholders to face the challenges of providing primary energy.

The sheer volume of PLN’s coal needs illustrates the complexity of this challenge. Each year, the requirement reaches around 154 million metric tonnes. Of this amount, approximately 134 million tonnes have been secured through official contracts, while around 20 million tonnes still need to be ensured to maintain safe reserve levels at power plants. This figure shows that primary energy procurement cannot be resolved through short-term policies, but requires mature planning, strong contracts, and consistent supervision.

The government’s move to set a Domestic Market Obligation (DMO) assignment of up to 212 million tonnes and the additional allocation of medium-calorie coal is appreciated as an effort to strengthen power plant supply. However, the success of the policy is not solely determined by the size of the quota set. What is far more important is ensuring that coal with the appropriate specifications arrives on time at each power plant.

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