Indonesia is actively increasing its reliance on coal-fired power plants to facilitate the expansion of its aluminum production sector. The government's strategy is designed to stabilize domestic manufacturing capabilities in response to global supply chain disruptions. As international conflicts, such as the war in Iran, have impacted the availability and cost of aluminum—a critical material for the automotive, construction, and aerospace industries—Indonesia is positioning itself to fill the supply gap by scaling up its industrial output.

While the expansion is framed as a necessary economic response to global market volatility, it highlights a tension between industrial growth and environmental goals. The reliance on coal is a significant component of the country's energy strategy, despite international pressure to transition toward renewable energy sources. The decision to prioritize coal-based energy for aluminum smelting underscores the government's focus on immediate economic security and industrial competitiveness over long-term decarbonization targets. The strategy relies on the availability of domestic coal reserves to keep production costs low, allowing Indonesian aluminum to remain competitive in a market currently struggling with high prices and supply shortages.