Coal Crisis Is An Alarm For The Government To Use Other Energy Sources, Observer: Prices Are Still An Obstacle

Coal illustration (Pixabay)

JAKARTA - Energy Watch Executive Director Mamit Setiawan said the problem of coal supply shortages is not new. For this reason, Mamit assessed that this crisis could be an alarm for the government to replace coal with other energy sources.

Even so, he said coal was still the cheapest primary energy source.

"We do have an energy solution that is quite abundant, but there are still price constraints, so it is not yet possible," said Mamit to VOI, Friday, January 8.

Seeing the coal reserve crisis that Indonesia is experiencing, Mamit considers this a lesson as well as a blow for the affected entrepreneurs. In addition to causing substantial losses from the economic side as well as socially in the community if there is a black out.

"For the government, this is clearly detrimental in terms of revenue. It's just that the economic and social losses in society are far greater than the state's losses from revenue," he added.

Mamit continued, PLN must also improve in terms of their contracts and payments to suppliers so that suppliers are also happy and get certainty.

Mamit asked the government to re-evaluate the DMO rules and be firm in providing sanctions for companies that fail to supply coal for domestic energy needs.

"The government must also evaluate the regulations related to this DMO. There needs to be a punishment and reward system for coal suppliers to PLN," he concluded.