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Indonesia pushes miners to ramp up coal amid blackouts

Bloomberg Markets •
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Indonesia’s energy ministry on Tuesday ordered domestic miners to quickly increase coal output after the nation experienced rolling blackouts. The directive arrives as President Prabowo Subianto’s government confronts a wave of public unrest sparked by recent protests. Officials framed the move as essential to stabilising the power grid and averting further disruptions.

Coal supplies feed Indonesia’s thermal power plants, which generate the bulk of electricity. With mines already operating near capacity, the ministry’s call for “urgent” increases pressures operators to lift output, potentially raising production costs. Traders watch the announcement for price signals, as tighter supply could lift spot coal prices and affect power‑sector margins.

The order underscores the administration’s willingness to intervene in energy markets amid political volatility. Investors in Indonesian coal firms may see short‑term revenue boosts, but heightened output expectations also raise questions about environmental compliance and long‑term demand. Market participants will gauge how quickly miners can deliver, because any lag could reignite grid instability.

Analysts note that the ministry’s swift directive may prompt renegotiations of existing supply contracts, with power utilities seeking guaranteed deliveries. If miners meet the target, Indonesia could avoid imports that would otherwise pressure the trade balance. The episode highlights how energy security concerns are shaping policy in a resource‑rich economy.