Indonesia is a developing country that has a various enegy resources, such as oil, coal,natural gas, geothermal, hydro etc. Although Indonesia consist of 13 thausandsislands, but the most populated island is Jawa with around of 120 millions (60% of thetotal population) people live there, the supply of electricity especilaly for outside Jawahas became a big issue on natonal energy policy.Until now, the electricity generation by diesel power plant is more than 95% of the totalgeneration outside Jawa. Since diesel oil import is increased year by year, theIndonesian government has plan to reduce or maintain the diesel import by energydiversification, such as utilization of biodiesel and gasohol for transportation sector andcoal for power generation.This paper will illustrate the potential market and impacts of the small coal steam powerplant to the electricity program of East Region of Indonesia.M. Sidik Boedoyo
