Indonesia’s recurring blackouts threaten industrial output and investor confidence despite its abundant coal reserves
Executive summary: Indonesia experienced widespread electricity blackouts affecting multiple regions in early July 2026, raising concerns about grid reliability despite the nation’s vast coal reserves. The outages disrupt manufacturing, deter foreign investment, and pose political risk for President Prabowo’s administration by highlighting gaps in infrastructure and energy security. Indonesian government (President Prabowo), state electricity utility PLN, coal producers, industrial consumers, and the general public. Government may accelerate grid upgrades, seek emergency power purchases, face parliamentary hearings, and push for faster renewable‑energy integration to prevent recurrence.
The article reports that several Indonesian provinces experienced power cuts in early July 2026, despite the country being one of the world’s largest coal exporters. Analysts cite aging transmission infrastructure, insufficient investment in grid modernization, and occasional fuel supply bottlenecks as contributing factors. The blackouts add to political pressure on President Prabowo, who has pledged to improve infrastructure and attract investment. The situation underscores the vulnerability of energy‑intensive sectors to reliability issues even in resource‑rich nations.
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