US and Europe Urge Indonesia to Retire Coal Plants, Bahlil: But They Don't Themselves!
Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has highlighted the inconsistency of advanced countries such as the United States (US) and European nations regarding their push for the early retirement of coal-fired power plants (PLTU) in Indonesia.
The government assesses that international pressure on energy transitions often does not align with the actual practices carried out by those countries in their own territories.
Bahlil criticised the double standards applied by the international community on the issue of global decarbonisation. He even asserted that Indonesia will not be trapped in an energy transition scheme deemed capable of harming national economic resilience and burdening the public with expensive electricity prices.
“I changed the PLTUs that some American and European countries told us to retire; they tell us to retire them, but they don’t retire them themselves. What’s this like? Net Zero Emission 2050, 2060. Now America is opening the coal option. In Europe, they’re opening the coal option; there’s even a request to us for 20 million per year,” he explained at the Sinergi Alumni IPB for the Nation event, quoted on Monday (4/5/2026).
The government has noted a contradiction where advanced countries still keep the option of using coal as a cheap energy source amid global geopolitical uncertainties.
Bahlil believes Indonesia must boldly determine its own energy policy direction without fully following narratives pushed by external parties.
“So this is like the Papuan saying: write one thing, read another, make another. And if it’s like this, it means we’re dancing to their tune. They tell us to use expensive energy, while they use cheap energy. I say, what kind of model is this?” he added.
The utilisation of coal-fired power plants is viewed as a defence strategy or survival mode to maintain state budget efficiency. Indonesia currently has abundant coal reserves, so its utilisation is to ensure the stability of domestic electricity supply.
“I decided, I said, just proceed with coal. This is about survival mode. We’re talking about efficiency. Don’t sacrifice our people with high electricity prices,” he stressed.
Nevertheless, the government states it remains committed to the net-zero emissions target by 2060 through the gradual development of new renewable energy.
However, energy sovereignty remains the top priority so that Indonesia has full control over its own natural resources for the prosperity of the people.
“The earth, water, and the natural elements within it are controlled by the state and used to the greatest extent for the prosperity of the people. We cannot hang our fate on other countries,” he concluded.