Indonesia’s Energy Security and the Role of Mining Companies in Indonesia Amid the Global Geopolitical Crisis

Abstract

Energy security is a strategic issue shaping national sovereignty and economic sustainability, especially amid geopolitical crises from Russia’s 2022 invasion of Ukraine to the 2026 Strait of Hormuz crisis. As the country with the largest coal reserves in the Asia-Pacific region, Indonesia positions mining companies as strategic actors in maintaining national energy security, despite facing a dual challenge: supporting fossil fuel energy while driving a low-carbon transition. This study finds that mining companies play a multidimensional role across the four dimensions of energy security. The research subjects are PT Bukit Asam Tbk (PTBA) and PT Adaro Energy Indonesia Tbk (ADRO). Both are recognized as two of the three largest DMO suppliers in Indonesia, alongside Kaltim Prima Coal (KPC). In availability, PTBA and ADRO contributed to coal production in 2025 reached 790 million tons and DMO realization of 209.93 million tons (115.79% of target) in 2024. In accessibility, investments include the Tanjung Enim–Keramasan coal facility and a 46% rise in ADRO’s capital expenditure to USD 394 million. In affordability, the USD 70/ton DMO policy and efficiency reduced PTBA’s cash cost per ton from Rp853,000 to Rp835,000. In acceptability, companies implement green mining, solar power, and wood pellet initiatives. Financial performance remains volatile, with windfall profits in 2022 and a sharp decline in 2023. The study concludes that mining companies occupy a paradoxical role as both beneficiaries and strategic buffers in national energy security.