The Indonesian Coal Mining Association (APBI) has raised concerns about the rapid growth of sustainable energy technologies, particularly solar power, considering the cost of electricity of solar power plants (PLTS) has become comparable to coal-fired power plants (PLTU).

According to the Indonesian Society for Conservation and Energy Efficiency, the cost of electricity from PLTS currently stands at around US$0.04 per kilowatt hour (kWh), and can reach US$0.08 per kWh if paired with storage facilities. Meanwhile, consumers are paying US$0.04 to US$0.06 per kWh for coal-generated electricity.

“I believe solar power is becoming a real threat to us. Beyond that, we are also competing with other renewable energy sources, not just solar,” APBI Chairman Priyadi during the Energy Insight Forum on Wednesday, September 17, 2025.

He highlighted that the rapid adoption of renewable energy (RE) in China has forced Indonesian coal companies to gradually redirect their export markets toward Southeast Asia, where renewable penetration remains relatively low.

According to CarbonBrief’s analysis of official Chinese data from the National Bureau of Statistics (NBS), National Energy Administration (NEA), and the China Electricity Council (CEC), the decline in coal’s share within China’s electricity system has been largely driven by an extraordinary boom in clean energy.

Official figures show that China’s solar power generation surged by 41 terawatt hours (TWh), rising from 53 TWh in May 2023 to 94 TWh in May 2024 − the largest single increase in China’s power generation history.

Meanwhile, the Institute for Essential Services Reform (IESR) noted that ASEAN is targeting a 23 percent renewable energy mix by 2025, but has only achieved 19 percent so far.

“The development of renewables in ASEAN cannot happen overnight. That’s why I think the coal industry remains optimistic about coal demand, both domestically and abroad,” Priyadi said.

He also emphasized coal’s continuing role in Indonesia’s energy supply, as reflected in the Electricity Supply Business Plan (RUPTL) 2025–2034, which includes plans to build 6.3 gigawatts of new coal plants, accounting for about 9 percent of new capacity until 2034.

Priyadi further argued that domestic coal demand is unlikely to decline anytime soon, noting that most coal-producing regions have yet to prepare alternative employment opportunities if renewable energy were to fully replace coal. Moreover, coal mines contribute significantly to local government revenue (PAD).

“No one has seriously thought about the economic transition if coal mining activities were to be phased out in these regions,” he concluded.