Reality check on energy transition
Inconsistency is the only consistency in Indonesian policies, including on energy transition program. Three years ago, the government banned development of new coal-fired power plan beyond those included in the electricity procurement business plan (RUPTL) 2021-2030, but the newly issued RUPTL 2025-2034 pointed to 2,200 MW of additional capacity.
Shell retail under Citadel-Sefas
PT Shell Indonesia, a subsidiary of Shell plc, has agreed to sell ownership of its gas station business to a joint venture of Citadel Pacific and Sefas Group. Shell confirmed the sale of 200 gas stations, including 160 company-owned sites, expected to close the transaction next year.
Mining Journal
President Prabowo Subianto is set to kick off yet another coal-to-dimethyl ether (DME) project. Details yet to be provided, including planned participation of the newly sovereign wealth fund Danantara in the project, following departure of American technology partner Air Products Inc from similar project involving state miner Bukit Asam (PTBA) and state oil and gas company Pertamina.
Sodium-ion disruption
Indian government announced on Monday that its researchers have succeeded in developing a super-fast-charging sodium-ion battery (SIB). India, which seeks self-reliance in battery technology, claimed the finding a ‘major breakthrough’ in energy storage technology because it is capable of charging up to 80% in just six minutes and lasting over 3,000 charge cycles.
Positive sign from Anambas block
Indonesia clearly needs to revitalize its oil and gas industry to reduce the huge trade defict. In the first quarter of 2025, oil and gas trade deficit reached US$4.84 billion, down from US$5.1 billion in the corresponding period of 2024, but mainly due to lower average prices.
Solar power update
Vanda RE Pte Ltd, formed by Gurin Energy Pte Ltd and Gentari International Renewables Pte Ltd, has recently signed a major framework supply agreement with LONGi Green Energy Technology Co Ltd, a top-tier solar technology company. Under the agreement, LONGi will supply up to 1 GW solar PV modules, deploying in Vanda RE’s utility scale solar and storage project in Riau Islands.
Pressures on coal
Data from two of China’s largest coal miners suggested more pressures on Indonesian thermal coal, which already suffered 12% decline in export volume in the first four months of the year. Higher domestic production might lead to further reduction in the country’s import.
The untouchable nickel player Sambaki Tambang Sentosa
A peaceful demonstration in Maba Tengah, East Halmahera Regency, North Maluku on April 28, 2025 ended abruptly as armed forces repeatedly fired tear gas to the crowd without warning. The protesters, who were dominated by women and children from the Wayamli and Buli indigenous communities, demanded local authorities to revoke the mining permits for PT Sambaki Tambang Sentosa (STS) that allegedly seized their land.
Renewable energy update
Indonesia is set to begin the construction of three solar power plants with combined capacity of 242 MWp as part of the government’s efforts to reduce reliance on fossil fuels and develop sustainable energy sources in the country. The Government through state-owned electricity firm PLN is working on the floating solar power plants, including Saguling floating solar power plant with a capacity of 92 MWp in West Java province, Karangkates floating solar power plant with 100 MW of capacity in East Java province, and Singkarak floating solar power plant in West Sumatra with a capacity of 50 MW.
Economy in the first quarter: Mining (nickel)
Indonesian nickel miners reported strong year-on-year financial performance in the first quarter amidst downfall of prices, but mainly attributable to last year’s delay in approval of work and budget plan (RKAB). Those didn’t experience such delay came out with deeper corrections in margins.