Distribution of Coal Stuck in South Sumatra, Observers Say Electricity Stability Is at Stake

Illustration. (Photo: Dok. Antara)

JAKARTA - The policy of the South Sumatra Provincial Government through Governor's Instruction Number 500.11/004/INSTRUKSI/DISHUB/2025 which prohibits coal transportation across public roads is now receiving serious attention from various parties.

The policy, which is effective from January 1, 2026, is considered not only to have an impact on the smooth running of transportation, but also has the potential to disrupt national energy security.

Expert in economics at the University of Muhammadiyah Bengkulu, Surya Vandiantara, said that instead of merely aiming to solve congestion and reduce infrastructure damage, the implementation of this policy actually has wider strategic consequences.

"The distribution of coal as the main primary energy for power plants is starting to experience significant obstacles," he said in a statement to the media, Tuesday, April 21.

He emphasized that the impact of the policy was no longer potential, but had been felt in the field. Surya said that the distribution of coal to at least nine Steam Power Plants (PLTU) in the southern Sumatra region had begun to be disrupted, even though PLTU was still the backbone of electricity supply in the region.

"This is not just a concern. Supply disruptions have already occurred and even forced distribution dispensations. If this condition continues, the stability of the electricity supply is at risk of being disrupted," he continued.

He added that although the local government's goal to maintain infrastructure quality and reduce congestion can be understood, the policy approach taken is considered to have underestimated the strategic aspects of the energy sector which has a wide impact at the national level.

Furthermore, the policy is also considered not to be fully in line with the direction of the national energy policy which is currently encouraging the acceleration of the development of the electricity sector.

The central government is currently carrying out various strategic agendas, including adding electricity capacity of around 71 gigawatt in the next 10 years, full electrification of thousands of villages in the period 2029-2030, strengthening national energy independence, and accelerating the transition to cleaner energy.

In this context, the smooth distribution of primary energy such as coal remains the main foundation, especially during the energy transition period which is still dependent on PLTU.

"There is a lack of synchronization of policies. On the one hand, the central government encourages massive increases in electricity production, but on the other hand, the distribution of its main raw materials is actually experiencing obstacles at the regional level," he explained.

This situation is increasingly complex amid uncertain global geopolitical dynamics, including tensions between Iran and the United States that could potentially affect the world's energy supply chain.

In a global environment full of uncertainty, Indonesia is actually required to strengthen domestic energy resilience comprehensively, both upstream and downstream.

The policy that has the potential to hinder the distribution of energy in the country is considered a counterproductive step to these efforts.

"When global pressure increases, every country competes to strengthen its energy system. Indonesia must not take policies that actually weaken the distribution of energy in the country," he said.

Therefore, it is necessary to take quick and coordinated steps between the central and regional governments to align existing policies." Without synchronization, overlapping regulations risk not only hindering energy distribution, but also can be detrimental to national interests more broadly," said Surya.