Jakarta. President Prabowo Subianto has defended the use of coal, saying there is nothing wrong with using the affordable combustible rock in times of crisis despite its environmental drawbacks.

Prabowo recently invited senior journalists and economists to his Hambalang residence for a candid interview on his administration’s policies. The talks moved on to the weeks-long Iran war that has choked off the global energy sector. It was then that the Indonesian leader named coal as the cheapest way to keep power supplies running.

“Remember, we [Indonesia] have abundant coal supplies. Coal is the most affordable option for power generation. It is environmentally bad, but hey, it’s a crisis,” Prabowo said. 

Despite the pro-coal stance, Prabowo told the same forum that sunny Indonesia already had plans to boost its renewable energy uptake. Setting up 100-gigawatts of solar power plants is now at the heart of this plan. He added: “We should be able to reach the first 13 gigawatts soon.”

Global media reports confirmed that Asia is pivoting to coal as the Iran war has fueled Strait of Hormuz closures and liquefied natural gas (LNG) shipment paralysis. News agency Reuters wrote that fellow ASEAN member Vietnam is beefing up coal-fired power. South Korea — a country that Prabowo will visit in about two weeks time — plans to “remove ceilings on coal-fired output and increase nuclear generation”.

As of 2023, coal and coal products make up 72% of Indonesia's domestic energy production, which encompasses energy used to produce electricity or fuels. Followed by natural gas (10.8%), primary oil (5.7%), as well as biofuels and waste (5.7%), according to the International Energy Agency. Global coal emissions also jumped 0.9%, reaching roughly 135 million tons of carbon dioxide equivalent in 2024.

Prabowo wants to finish the 100-gigawatt rollout within the next two years. Energy analyst Fabby Tumiwa recently estimated that the solar power ambitions could “save up to Rp 21 trillion ($1.2 billion) in fuel subsidies and unlock investment worth between $50 billion and $70 billion”. The plants are expected to slash emissions up to 24 million tons of carbon dioxide equivalent.

From a financing standpoint, Indonesia has the Just Energy Transition Partnership (JETP), a climate funding package meant to encourage the country to move away from coal. The JETP funding is worth $21.4 billion, of which at least 15% of the money is ready for use. Some of this cash will go into bankrolling solar photovoltaics.