Indonesia Keeps Coal Power in New Energy Plan, Minister Defends as 'Not Haram'
Key Takeaways
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JAKARTA, Investortrust.id – Indonesia’s latest electricity procurement plan includes 6.3 gigawatts (GW) of new coal-fired power plants, a move officials say is necessary to ensure energy security despite global pressure to reduce fossil fuel use.
Minister of Energy and Mineral Resources Bahlil Lahadalia defended the coal inclusion in the Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) 2025–2034, emphasizing that while Indonesia is committed to energy transition, it must prioritize national interests.
“Coal is not a forbidden commodity. Let’s not treat it like some kind of taboo,” Bahlil said during a press conference on Monday, May 26, 2025.
“If we still need electricity and don’t have the money, coal is not haram. Don’t treat it as if coal is haram, you know. This is our own resource—belonging to the Republic, after all.”
The RUPTL targets an overall addition of 69.5 GW in power capacity over the next decade. This includes: Coal-fired power plants (PLTU): 6.3 GW, Gas-fired power (PLTG): 10.3 GW, Renewables (EBT): 42.6 GW, Energy storage systems: 10.3 GW
Of the 6.3 GW in new coal capacity, 3.2 GW is set for development in 2025, largely due to projects already in the pipeline and nearing commercial operation, Bahlil added.
Global Context and Criticism
Responding to criticism from environmental advocates, Bahlil pointed out that several developed countries have not fully moved away from coal. He cited examples such as Turkey and various European nations still relying on coal-fired power, and noted that even the United States has stepped back from its commitments under the Paris Agreement.
"Some of the countries that claim to be champions of renewable energy are still negotiating coal contracts with us," Bahlil said. "If they still use coal, why should they demand that we stop?"
His comments come amid rising tensions between energy affordability, transition targets, and international scrutiny. Despite Indonesia's aim to increase the share of renewables, Bahlil suggested the country must balance that with realistic financing and domestic needs.
Strategic Priorities
Indonesia’s RUPTL serves as a roadmap for PLN, the state-owned electricity company, to plan power generation, distribution, and investment. This edition signals the government’s pragmatic stance: supporting the growth of renewable energy without immediately phasing out coal, especially when financial constraints delay clean energy expansion.