Cheap Energy and the Betrayal of the Constitution

By Leonyta Nugroho

03 Feb 2026 03:15 WIB 03 February 2026 03:15 WIB 4 minutes reading time: 4 minutes 9 read

Updated: 18 Mar 2026 08:11 WIB 18 March 2026 08:11 WIB

For decades, the public has been presented with the narrative that coal is an economic savior because of its cheap price. But cheap for whom?

Energi fosil di Indonesia (Source: The Jakarta Post)

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Table of Contents

Article 33 the 1945 Constitution: From People's Mandate to Fossil Shield
Normalization of Legalized Injustice
Conclusion

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Legal Literacy - For decades, the public has been presented with the narrative that coal is an economic savior because of its low price. However, cheap for whom? In economic and political terms, the low electricity prices we enjoy today are an illusion supported by the mechanism ofDomestic Market Obligation (DMO) and massive subsidies.

The state is actually engaging in dangerous fiscal gambling. Based on research data, the fiscal burden of maintaining dependence on fossil energy is estimated to reach USD 60 billion by 2034. Moreover, inconsistencies in planning between ministries and PLN have the potential to burden the state budget by up to IDR 489 trillion in the 2025-2040 period.

This is a form of pseudo-partiality. The state pays twice, first for fossil energy subsidies to keep prices "affordable", and second for health costs and environmental restoration due to pollution from coal-fired power plants (PLTU) that are never included in the cost structure (externalities). The state's silence in reforming this energy market structure is not merely slow bureaucracy, but a governance failure that allows the people to pay a much higher price in the future.

Article 33 the 1945 Constitution: From People's Mandate to Fossil Shield

Article 33 paragraph (3) which states that natural resources must be used for "the greatest possible prosperity of the people" is now often reduced in meaning to merely "cheap electricity sourced from fossils". In fact, prosperity cannot be achieved without health and environmental sustainability. A progressive interpretation of the constitution should emphasize Article 33 paragraph (4), which explicitly mandates the principles of "sustainability" and "environmental awareness".

Slowing down the rate of renewable energy on the grounds of protecting the interests of state-owned enterprises (BUMN) mired in fossil asset debt is a form of state failure in carrying out its ecological mandate. The right of state control should be used to accelerate the transition to protect citizens, not to protect industries that are destroying the future.