Prabowo orders faster response to Kalimantan blackouts
JAKARTA, thekabarnews.com—Indonesian President Prabowo Subianto has instructed the Energy and Mineral Resources Ministry and state electricity company PT PLN to accelerate their response to recurring...
JAKARTA, thekabarnews.com—Indonesian President Prabowo Subianto has instructed the Energy and Mineral Resources Ministry and state electricity company PT PLN to accelerate their response to recurring power outages. In particular, this concerns power outages across parts of Kalimantan.
Prabowo issued the directive during a meeting with Energy and Mineral Resources Minister Bahlil Lahadalia at the Presidential Palace complex in Jakarta on Tuesday, August 4. The cabinet secretariat reported this information.
The meeting also covered subsidized fuel prices and downstream-processing commitments imposed on coal companies.
Bahlil said that network and power-plant maintenance primarily caused the reported outages. They were not the result of a nationwide shortage of energy resources.
Prabowo directed the ministry and PLN to complete the work quickly and improve service reliability in affected areas.
The explanation requires regional context. In late July, PLN’s Central and South Kalimantan unit said several generating units were still undergoing maintenance and recovery.
The work had temporarily limited available capacity during peak demand and forced PLN to manage electricity loads in some areas.
PLN said it used the measures to maintain grid stability and prevent wider disruptions. Technicians restored the affected generating units, according to a PLN statement reported by detikKalimantan.
Prabowo also directed the government to maintain subsidized fuel prices. The policy covers fuels whose retail prices the government regulates to protect consumers and preserve purchasing power.
The directive reinforces an earlier government commitment to keep subsidized fuel prices unchanged through the end of 2026.
“We agreed, following the president’s direction, that subsidized fuel prices will not increase through the end of the year,” Bahlil said, according to the energy ministry.
The government will continue evaluating nonsubsidized fuel prices against market indicators. Indonesian regulations allow licensed companies to set retail prices for general fuel within a government formula. This formula considers acquisition, storage and distribution costs, taxes and a capped margin.
The formula uses international refined-product benchmarks, including the Mean of Platts Singapore. It does not rely solely on daily crude-oil movements, as quoted by the oil and gas directorate general.
Prabowo also ordered national coal companies that have converted expiring miners holding work contracts (PKP2B) into special mining business permits (IUPK) to fulfill their downstream-processing commitments.
The government uses downstreaming to encourage companies to process natural resources domestically, add value, create industrial jobs and reduce reliance on raw-commodity exports.
Bahlil previously described downstreaming as a principal condition for extending former PKP2B operations. Indonesia’s current mining framework is governed by the Mineral and Coal Mining Law. Government Regulation No. 39/2025 amended the rules for mining licenses and continued operations.
The latest directives place responsibility on the Energy Ministry and PLN to restore reliable electricity service. At the same time, they must maintain fuel affordability and enforce coal companies’ investment obligations.
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