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The Big Mistake Behind the Indonesian Coal Crisis

Jakarta

The coal crisis that hit Indonesia is said to be due to a big mistake in energy management.

Minister of State-Owned Enterprises (BUMN) Erick Thohir said that Indonesia should be able to meet domestic needs because it is a coal-producing country.

Erick took steps to remove the Primary Energy Director of PT PLN (Persero) Rudy Hendra Prastowo. Hendra was sacked because PLN was experiencing a coal crisis and had the potential to disrupt electricity supply.

Rudy’s replacement is Hartanto Wibowo, who is said to be a top talent at the state-owned electricity company. Hartanto is still young and is considered to have the ability to solve the coal crisis.

He also highlighted that other countries that do not have natural resources are not experiencing an energy crisis. “What does it mean, there is something that we must fix together,” he said, at the Ministry of SOEs.

According to him, this energy supply has been observed since early 2021. Especially since La Nina hit and this has an impact on coal distribution.

He has even chaired this meeting since January, when there was a shortage of natural resources needed for electricity.

Erick added that the supply cycle should have been anticipated. He said it would be a big mistake for this supply problem to be unplanned.

“Therefore, if we, as a country with large natural resources, do not have a plan, let alone do not take care not to become a crisis, this is a big mistake,” he said.

Erick said President Joko Widodo (Jokowi) had emphasized the importance of shared responsibility for economic development. He continued, the economy will not improve without the presence of electricity.

“It’s impossible for our economy to continue to grow without electricity. We’ll just use electricity later,” he said.

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