Indonesia to continue coal use to maintain energy security and stable power costs

Indonesia will continue to rely on coal fired power plants to maintain energy security and keep electricity prices affordable, Energy and Mineral Resources Minister Bahlil Lahadalia said as quoted by Antara.

Speaking at an event in Jakarta on Saturday, Bahlil said Indonesia’s large coal reserves remain a key advantage, particularly amid global energy uncertainty linked to geopolitical tensions in the Middle East.

He said the government cannot abruptly phase out coal, noting that some developed economies are also turning back to coal to secure domestic energy supply.

“America is considering coal as an option. Europe too, with some countries asking us to supply 20 million tons per year,” he said.

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Bahlil added that energy policy must prioritize efficiency and affordability, especially to avoid higher electricity costs for consumers.

Indonesia produced around 790 million tons of coal in 2025, exceeding this year’s production target of 739.6 million tons despite being below the previous year’s target.

Of the total output, about 514 million tons, or 65.1%, were exported, while domestic consumption accounted for 254 million tons, or 32%. The remaining 22 million tons were held as stockpiles.

The government’s stance reflects a balancing approach between maintaining energy security and managing the transition toward cleaner energy sources.

Editing by Alexander Ginting