PLN Accelerates Coal Procurement for Power Plants

6 hours ago 1

TEMPO.CO, Jakarta - The CEO of Indonesian electricity company PLN, Darmawan Prasodjo, stated that the company is accelerating the process of signing contracts with coal suppliers to meet the needs of power plants.

Darmawan explained that the PLN is working closely with the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources to speed up the contract process and coal distribution to power plants.

"We are also expediting the process of contract signing with coal suppliers, especially medium-rank coal, which has been assigned by the government," Darmawan said in a press conference on Friday night, as quoted from a live broadcast on YouTube's Garuda TV, Saturday, June 20, 2026.

He claimed that medium-calorific coal is now flowing to steam power plants (PLTUs) in various areas of Java, including those owned by PLN and by private power producers.

For the western part of Java, the supply has started to be distributed to PLTU Pelabuhan Ratu, PLTU Lontar, PLTU Labuan, PLTU Suralaya 1-8, PLTU Jawa 7, PLTU Jawa 9 and 10, as well as PLTU Indramayu. Meanwhile, for the eastern part of Java, the supply is being directed to PLTU Paiton 1 and 2, PLTU Paiton 9, PLTU Rembang, PLTU Pacitan, and PLTU Tanjung Awar-Awar.

Scheduled power outages occurred from June 8 to June 19, 2026, in some areas of Java. Based on Tempo's records, power outages have occurred in various regions in all provinces in Java, including Jakarta.

Most recently, power outages were reported in several areas in Yogyakarta and in Serpong, South Tangerang, Banten, on Friday, June 19, 2026.

Previously, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, mentioned the shortage of medium-rank coal supply as the cause of power outages in certain areas of Java.

During a working meeting with the House of Representatives (DPR) Commission XII on June 15, 2026, Bahlil explained that the limited coal supply had caused several power plants to be unable to generate electricity optimally.

Bahlil claimed that this issue is related to a significant price gap between coal for domestic needs, or the domestic market obligation (DMO), and market prices. Currently, coal for PLN is sold at a DMO price of US$70 per ton, while the Coal Reference Price (HBA) for the first period of June 2026 reached US$121.83 per ton for coal with a calorific value of 6,322 kcal/kg and US$84.53 per ton for medium-calorific coal of 5,300 kcal/kg.

"So, the selling price to PLN is no longer feasible for the company. That is the problem," said Bahlil.

In addition to the DMO price factor, the Executive Director of the Indonesian Coal Mining Association (APBI), Gita Mahyarani, believes that there are other fundamental issues affecting the availability of coal for power plants. According to her, one of the causes is the coal production reduction policy through the 2026 Work Plan and Budget (RKAB), which limits the producers' flexibility.

"Moreover, the current production is also in the process of adjustment through the RKAB, so the producers' flexibility is not as extensive as before," said Gita.

Read: Govt Denies Rumors of Coal Crisis Behind Recent Blackouts

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