Potential Savings from Halting New Coal Power Plant Construction

15 October 2026

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Admin CERAH

Potential Savings from Halting New Coal Plant Construction

This study examines the economic and fiscal implications of proceeding with three delayed coal-fired power plant projects—Sumut-1, Jambi-1, and Jambi-2—which are still included in the 2025–2034 Long-Term Power Supply Plan (RUPTL). Modeling results indicate that the continuation of these three projects has the potential to increase electricity supply costs by Rp144.22 trillion during the 2025–2045 period and add to the burden of electricity subsidies and compensation by up to Rp149.51 trillion from 2028 to 2045. However, any decision to halt these projects must also take into account the adequacy of supply and the reliability of the electricity system. This study calls for project evaluations based on actual conditions, fiscal risk assessments, and comparisons with alternatives such as renewable energy, energy storage, and grid reinforcement.

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