Rolling blackouts remain unresolved in Indonesia, with power outages more frequent in recent weeks. PLN attributes the outages to limited coal supplies, while several areas in Yogyakarta have also experienced prolonged scheduled power cuts.
Responding to the rolling blackouts, Dr. Rachmawan Budiarto, a lecturer in the Department of Engineering Physics at FT UGM, said the issue extends beyond coal availability and power plant operations. He said multiple interconnected factors contribute to the problem, including fluctuations in global energy prices.
Coal governance, including price regulations, production quotas and targets, the allocation of coal for domestic electricity generation versus exports, and variations in coal volume and quality, also make the issue highly complex.
“Power plant operations, coal supply volumes, coal specifications, and PLN’s electricity management, including subsidies and compensation, are all part of a complex system,” he said on Tuesday (Jul. 7).
Regarding the certainty of coal allocated for PLN and the country’s ability to supply coal that meets PLN’s power plant specifications, Dr. Budiarto explained that electricity supply depends on cooperation between the government and key stakeholders, including coal producers.
When PLN cannot secure sufficient coal in terms of volume, calorific value, or delivery time, the company must seek alternative procurement methods. If market-priced coal purchases are permitted, PLN must also have sufficient cash flow to support such purchases.
“Uncertainty in the supply of coal with the required specifications may force PLN to procure coal through alternative means, which presents additional challenges,” he explained.
Dr. Budiarto emphasized that rolling blackouts stem not only from insufficient coal supply but also from the quality and specifications of the available coal. Although Indonesia has abundant coal reserves, much of the supply does not meet the specifications required by existing power plants. He noted that coal is generally classified into three categories based on calorific value: low-, medium-, and high-calorie coal.
“The largest coal reserves in Indonesia consist of low-calorie coal,” he said.
However, most coal-fired power plants are not yet capable of directly using low-calorie coal without modifications to their generating systems.
“If power plants are expected to utilize low-calorie coal, modifications are necessary. Although Indonesia has abundant coal reserves, the challenge lies in meeting the required quality specifications,” he explained.
Dr. Budiarto said the electricity policy ought to prioritize affordability and reliability to protect low-income communities. Electricity must remain available to support productive economic activities, enabling businesses to operate competitively. Excessively high electricity tariffs would undermine the business climate.
To ensure businesses continue to operate, protect lower-income communities, and create employment opportunities, the government continues to allocate substantial funding for electricity and fuel subsidies and compensation.
Looking ahead, Dr. Budiarto proposed several alternatives, including improving PLN’s capability to use low-calorie coal through modifications to power plants as well as the broader electricity system. He also stressed the immediacy of accelerating Indonesia’s energy transition.
“The recent blackouts underscore the importance of accelerating renewable energy development so that Indonesia is not overly dependent on coal for electricity generation,” he said.
He also encouraged reducing dependence on coal export revenues while lowering domestic reliance on coal for electricity production.
As for renewable baseload energy sources that could replace coal, Dr. Budiarto urged the government to accelerate the development of geothermal power plants and nuclear power, noting that preparations for nuclear energy development have begun. Hydropower also has characteristics suitable for baseload electricity generation and should be expanded more rapidly.
Although solar photovoltaic (PV) systems do not provide baseload power, he believes their deployment should also be accelerated. According to Dr. Budiarto, financing remains the main obstacle to expanding renewable energy.
“Part of the savings in government spending could be allocated to accelerate the development of new and renewable energy. By doing so, Indonesia’s dependence on coal can be reduced more quickly,” he concluded.
Author: Fatihah Salwa Rasyid
Editor: Gusti Grehenson
Post-editor: Jasmine Ferdian
Photo: Canva