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Data from Indonesia’s Ministry of Energy and Mineral Resources (ESDM), released in October 2024, shows that 67% of the country’s electricity generation still relies on coal.

Additionally, the BP Statistical Review of World Energy ranks Indonesia sixth globally in terms of coal reserves. This abundant availability has made coal a key component of the national energy mix.

However, this heavy dependence on coal is concerning, given its significant environmental impact due to high carbon emissions.

At a time when the world is actively pursuing cleaner, renewable energy alternatives, this reliance raises important questions.

So, if we are to transition away from coal, what alternative energy sources should we be considering?

Why Do We Need to Move Away from Coal?

Coal has long played a critical role in powering industry and infrastructure. But the environmental cost is simply too high to ignore.

Extracting coal involves clearing forests, destroying natural habitats, and causing soil erosion and land degradation. These destructive processes pose a serious threat to biodiversity.

Worse still, coal is one of the biggest contributors to climate change. Burning coal releases massive amounts of greenhouse gases, particularly carbon dioxide, which drives global warming and disrupts the climate system.

Read More: Why Switching to Green Energy Matters and How It Impacts the Planet?

What Are the Alternatives to Coal?

Today, several alternative energy sources are being explored and developed both globally and in Indonesia. These alternatives are cleaner and more sustainable, making them ideal replacements for coal.

1. LNG (Liquefied Natural Gas)

LNG is a versatile fuel that can power electricity plants and industrial operations. Its biggest advantage is scalability—LNG can meet large-scale energy needs, and infrastructure for its transport and use is already in place, making it a practical short-to-medium-term substitute for coal.

Read More: What’s the Difference Between LPG and LNG? A Clear Breakdown

2. Solar Energy

Solar power harnesses energy from the sun—a virtually limitless resource. Indonesia, being a tropical country, enjoys abundant sunshine throughout the year. Solar panels can convert sunlight into electricity for both residential and industrial use.

3. Hydropower

Hydropower uses flowing water from rivers or dams to spin turbines and generate electricity. This method is already widely used in hydroelectric power plants (PLTA) and offers a renewable and steady energy supply with minimal emissions.

Read More: What’s Driving the Surge in Electricity Demand in the Modern Era?

4. Wind Energy

Like water, wind can turn turbines to produce clean electricity. Countries like Denmark and the Netherlands have successfully adopted wind energy on a large scale, proving its reliability and long-term value.

5. Geothermal Energy

Beneath the Earth’s surface lies a vast reservoir of heat that can be tapped as geothermal energy. Indonesia, located along the Pacific Ring of Fire, has immense geothermal potential—enough to power millions of homes and industries sustainably.

Read More: Why the Energy Crisis Poses a Serious Threat to the Global Economy?

Why LNG Stands Out as a Promising Replacement for Coal?

Coal combustion will always be associated with high carbon emissions and toxic pollutants. That’s why there’s growing urgency to find an energy source that is not only cleaner but also immediately usable on a large scale. This is where LNG shines.

LNG produces significantly less carbon dioxide than coal when burned—helping cut greenhouse gas emissions.

Moreover, LNG is easy to store and transport in liquid form, even to remote or island regions that aren’t connected to gas pipelines. This makes it a flexible and reliable energy option.

Read More: Why LNG Plays a Key Role in the Global Energy Transition?

Energy Transition Strategy from Coal to LNG and Renewable Energy (RE)

To support Indonesia’s ambition of becoming a developed nation by 2045, the Ministry of Energy and Mineral Resources (ESDM) has made a strong commitment to providing clean and affordable electricity, in line with the national goal of achieving Net Zero Emissions by 2060.

The government has outlined several key strategies to transition from coal to liquefied natural gas (LNG) and renewable energy (RE), including:

• Accelerating the adoption of diverse and regionally distributed renewable energy sources across the country.
• Diversifying renewable energy sources to ensure energy security.
• Developing energy planning documents with a strong emphasis on renewable energy.

These efforts are expected to progress smoothly if the government works collaboratively with the private sector to accelerate the energy transition and support PLN’s electricity supply initiatives.

LNG vs Coal: A Quick Comparison  

Aspect	Coal	LNG
CO₂ Emissions	High	Lower (by 40–50%)
Air Pollution	Severe	Minimal
Waste Output	Produces ash	Almost none
Energy Efficiency	Relatively low	High
Infrastructure Readiness	Widely available	Rapidly expanding
Long-Term Potential	Limited and environmentally harmful	Ideal for energy transition

The world cannot afford to keep depending on coal—its environmental and health impacts are too severe.

LNG emerges as a realistic, cleaner, and more cost-efficient alternative that meets current energy needs while supporting long-term sustainability goals.

With growing infrastructure and a solid distribution network, LNG can help power the nation without causing the long-lasting harm coal leaves behind.

Coal remains a crucial energy source for electricity generation in several countries, including Indonesia, China, and India.

While coal offers significant economic benefits, there’s no denying that its use comes with serious risks and downsides.

To fully understand coal’s role in the global energy transition, it’s important to weigh both its advantages and the challenges it brings.

What Are the Benefits of Coal?

Coal isn’t just an energy source, it also plays a vital role in various industrial sectors.

1. Source of Electricity

Coal is the primary fuel for coal-fired power plants and is widely used to meet electricity demands, especially in developing countries.

Its abundance and relatively low cost make it a go-to solution where infrastructure for renewable energy is still lacking.

Read More: The Crucial Role of Alternative Electricity Sources in Shaping Our Future

2. Backbone of Heavy Industries

Heavy industries like steel, cement, and aluminum heavily rely on coal, not only as an energy source but also as a raw material.

Coking coal, in particular, is essential in steel production, making coal supply critical for maintaining industrial supply chains.

3. Major Source of National Revenue

Coal is one of Indonesia’s top export commodities and contributes significantly to national income.

It generates revenue through taxes, royalties, and foreign exchange. Coal-producing regions also benefit from profit-sharing schemes that help fund local development.

4. Job Creation

The coal industry provides millions of jobs, both directly in mining operations and indirectly through logistics, transportation, and other support services.

In some regions, coal mining is the backbone of the local economy, supporting entire communities.

Read More: What’s Driving the Surge in Electricity Demand in the Modern Era?

The Threats and Risks of Coal Use

Despite its benefits, coal also carries significant environmental and social consequences.

Air Pollution and Greenhouse Gas Emissions

Burning coal produces large volumes of carbon dioxide, making it one of the main contributors to global warming.

It also releases harmful pollutants such as sulfur dioxide, nitrogen oxides, and fine particulate matter, which severely affect air quality and public health.

Read More: Why Cutting Carbon Emissions Is Critical for the Planet’s Future?

Environmental and Health Impacts

Coal mining, especially open-pit operations, can damage landscapes, destroy habitats, and cause soil erosion.

Rehabilitation of abandoned mines often falls short, leaving behind massive pits that pose long-term environmental and safety risks.

People living near coal mines or power plants are also at higher risk of respiratory illnesses, including asthma, bronchitis, and even lung cancer.

Social Conflict and Local Economic Disruption

The coal industry has often been a source of conflict between local communities and mining companies.

These tensions typically stem from land evictions, environmental pollution, and the unequal distribution of economic benefits, all of which can fuel social unrest.

Moreover, regions that rely solely on coal mining for their economy are at risk of disruption when reserves are depleted or coal prices plummet.

This is why the energy transition should not be seen merely as an industry trend, but as a policy necessity.

Such efforts can be supported by accelerating the phase-out of coal-fired power plants through a combination of regulations and investment incentives for future energy development.

Read More: Why the Energy Crisis Poses a Serious Threat to the Global Economy?

Comparison of Impacts Across Energy Sources

Energy Source	CO₂ Emissions (kg/MWh)	Air Pollution	Sustainability
Coal	820	Very High	No
Oil	650	High	No
LNG	490	Moderate	Limited
Solar Power	45	Low	Yes
Wind Power	11	Very Low	Yes

The table above presents a comparison of various energy sources based on three key aspects:

• Carbon dioxide (CO₂) emissions
• Level of air pollution
• Sustainability

Coal and oil are the highest emitters of CO₂, resulting in significant air pollution. This makes them major contributors to environmental degradation and climate change.

On the other hand, liquefied natural gas (LNG) produces considerably lower CO₂ emissions than coal and oil, positioning it as a cleaner transitional energy source.

Due to its lower CO₂ output, LNG also generates less air pollution, reinforcing its role as a potential energy bridge from coal and oil toward a cleaner and more sustainable energy future.

LNG as a Cleaner Energy Alternative

Given coal’s environmental and social impacts, switching to cleaner energy sources is a sensible step forward. One of the most promising alternatives is LNG (Liquefied Natural Gas).

Here’s why LNG is gaining attention as a cleaner energy option:

• Lower carbon emissions compared to coal
• Higher energy efficiency
• Environmentally friendly, producing no solid waste like ash

LNG plays an important role in reducing emissions. With the right infrastructure and policy support, LNG can be a powerful stepping stone toward a greener energy future.

When discussing which sector consumes the most energy, many people immediately think of transportation. But is that really the case?

Surprisingly, it’s not. According to the Handbook of Energy and Economic Statistics of Indonesia 2023, the transportation sector ranks second in terms of total energy consumption.

So, which sector actually tops the list? Let’s take a closer look at the real energy consumption across various sectors.

Which Sectors Consume the Most Energy?

Based on the latest data, here’s how energy consumption ranks by sector:

1. Industrial Sector

The industrial sector is the largest energy consumer. It includes a wide range of activities, from heavy industries to manufacturing consumer goods like food, textiles, and electronics.

Industrial processes such as operating heavy machinery, chemical production, and raw material extraction require massive and consistent energy input. A country’s level of industrialization greatly affects its total industrial energy use.

Read More: Top Benefits of Natural Gas, More Than Just Low Emissions

2. Transportation Sector

The movement of people and goods—via cars, public transit, aviation, and shipping—demands vast energy resources.

Transportation heavily depends on fossil fuels, making it a major contributor not only to total energy consumption but also to global greenhouse gas emissions. Urbanization, population growth, and global trade are all drivers of increasing energy needs in this sector.

3. Building Sector (Residential & Commercial)

Energy is widely used in buildings for lighting, appliances, cooking, and office equipment.

The level of energy consumption in buildings is influenced by design efficiency, the use of energy-saving technologies, and occupant behavior. Both residential homes and commercial facilities like offices, malls, and hotels contribute significantly to energy demand.

4. Agriculture Sector

While agriculture may not top the list in total consumption, it still plays a vital role.

Energy in this sector powers farm machinery, irrigation pumps, fertilizer and pesticide production, food processing, and the transportation of agricultural products. Agricultural modernization often leads to increased energy needs.

Read More: The Crucial Role of Alternative Electricity Sources in Shaping Our Future

Energy Consumption by Sector

Though transportation is often perceived as the biggest energy user, it actually trails slightly behind industry. Here’s the breakdown based on energy consumption in Million BOE (Barrel of Oil Equivalent):

Rank	Sector	Energy Consumption (Million BOE)
1	Industry	556,6
2	Transportation	448,5
3	Residential	166,2
4	Commercial	55,5
5	Others	10,6

Here are how each sector uses energy:

• Industry: High consumption in manufacturing, steel, cement, and chemical sectors, relying heavily on electricity and heat.
• Transportation: High fuel use, especially from private vehicles, is a major factor in energy demand.
• Residential: Energy used for electricity, cooking (LPG), heating water, and appliances.
• Commercial: Heavy use of lighting, cooling (AC), and electronics in offices, hotels, and retail centers.
• Others: Includes agriculture, construction, and smaller miscellaneous sectors.

Read More: Why Switching to Green Energy Matters and How It Impacts the Planet?

What Drives Energy Consumption?

Energy consumption is influenced by various interconnected factors, including:

• Economic growth
• Technological development
• Consumer behavior

Generally, as a nation’s economy and population grow, so does its energy use. Additionally, the demand for modern technology and digital infrastructure adds to this increase.

Energy policy, public awareness, and environmental concern also play vital roles in shaping consumption trends.

Read More: Decarbonization: Why the World Must Shift to Clean Energy?

The Role of LNG in Tackling High Energy Use

Liquefied Natural Gas (LNG) is gaining recognition for its role in reducing inefficient and polluting energy use. It serves as a cleaner alternative to coal and oil, offering:

• Lower greenhouse gas emissions
• Higher combustion efficiency
• Versatility across heavy transport, industry, and power generation

LNG usage helps cut national fuel consumption, especially in energy-intensive sectors like industry and transportation. As a transitional fuel, LNG can bridge the gap between traditional fossil fuels and renewables, ensuring a stable and gradual shift to a sustainable energy system.