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President Susilo Bambang Yudhoyono on Wednesday inaugurated three coal-fired power plants and broke ground on the upgrade of an oil refinery, facilities that are intended to help the country cope with rapidly rising demand for fuel and electricity.

“As our country grows and the world’s population grows, the need for energy is increasing sharply,” the president said in Cilacap, Central Java, at the refinery of state-controlled oil and gas company Pertamina.

Yudhoyono also launched three power plants, two in Banten and one in Central Java, via teleconference. The three plants have a total production capacity of 1,600 megawatts and began producing on Wednesday.

“The challenge to provide energy for our people is getting harder, but if we can’t provide an adequate energy supply, then prices will go up and this creates instability,” he said.

State utility company Perusahaan Listrik Negara (PLN) owns the two power plants in Banten, while the other is leased from Central Java Power.

The power plants are part of the country’s 10,000 megawatt program that aims to boost production to the Java and Bali electricity grid.

The three plants will help bring the grid’s total capacity to 23,000 megawatts, more than its current peak load of 19,700 megawatts.

The three plants, which cost about $3.37 billion in total, are expected to consume 6.5 million tons of coal annually, allowing an estimated annual savings of Rp 19.9 trillion ($2.2 billion) in fuel costs and subsidies.

Pertamina expects this year’s national fuel consumption to reach 56 million kiloliters, with an average increase of 4 percent per year.

Pertamina is aiming for fuel self-sufficiency by 2018, though it currently produces 41 million kiloliters.

“Our energy development goal for 2014 and beyond is to reach self-sufficiency, and perhaps even a surplus. The next stage after that is developing a proper distribution line to accommodate the needs of our people in this country,” Yudhoyono said.

He said one of the aims of the country’s development plan was to be able to produce more fuel and coal than it consumed so that its energy could be sold.

“After being able to raise our production, we should also be able to distribute them efficiently and on target,” Yudhoyono said.

He said that given the country’s sprawling geography, a good distribution system was critical in order to make energy accessible and affordable.

“We also want to be able to have a control on fuel prices so that we can ensure affordability and stability of fuel prices in our country,” he added.

The power plants and upgraded refinery are expected to generate combined employment of 21,000 to 23,000 jobs.

Pertamina’s $1.4 billion residual fluid catalytic cracking upgrade is expected to boost gasoline production at the facility by 1.9 million kiloliters per year.