Coal Dependence in the Energy Mix

5 days ago 14

January 6, 2026 | 03:54 pm

TEMPO.CO, Jakarta - Since coming under the leadership of Bahlil Lahadalia, the Ministry of Energy and Mineral Resources (ESDM) has rarely been free of controversy. The ban on the retail sale of 3-kilogram liquefied petroleum gas (LPG) canisters, for instance, was followed by fuel supply shortages at privately owned gas stations. Most recently, before closing out the 2025 calendar year, the ministry took part in drafting revisions to Presidential Regulation No. 112/2022 on Accelerating Renewable Energy Development for Electricity Supply.

Rather than spurring the massive development of green power, the draft regulation rolls out the red carpet for coal-fired power plants (PLTU). A public consultation held by the ministry's Directorate-General of New, Renewable Energy and Energy Conservation on November 6, 2025, turned into a forum flooded with criticism.

One of the most contentious provisions is Article 3. The clause allows exemptions for the construction of new PLTUs on the grounds of safeguarding system reliability or energy independence. The rule is expected to prolong the dominance of coal-based generation. In other words, the government's much­ touted energy transition remains a distant prospect.

At present, new PLTUs are allowed to operate only if they are integrated with industrial facilities to boost the value added of natural resources. Another exemption applies if the plant is listed as a national strategic project deemed to make a major contribution to job creation and economic growth.

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