Indonesia's energy crisis risks economic impact

The article discusses Indonesia's crisis in electricity supplies caused by long-term policies that set quotas for the coal industry. As a result, the country has had to reduce coal production and sell part of it at low prices, leading to supply shortages and fluctuations in the power supply. Indonesia heavily relies on coal to generate about two-thirds of its electricity, a situation worsened by rising production costs related to the war in Iran. The president has compelled the Ministry of Energy and the electricity company to quickly address power outages, while there is a need to accelerate the transition to renewable energy sources such as solar and wind to enhance long-term energy security. Government policies that impose low prices on coal and restrict production volume have adversely affected the availability of supplies, especially for small-scale projects, despite ongoing commitments to phase out coal-fired power plants in the coming years.

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