150 Million Tonnes of Coal Secured for Domestic Needs

Jakarta — The Ministry of Energy and Mineral Resources (ESDM) has ensured that coal supplies for domestic needs will remain prioritised, even as the government evaluates 2026 production in its Work Plan and Budget (RKAB) at approximately 600 million tonnes.

Tri Winarno, Director General of Minerals and Coal (Minerba) at the ESDM Ministry, stated that the ministry has secured around 150 million tonnes of coal for domestic consumption through the Domestic Market Obligation (DMO) scheme. This figure corresponds to the requirement for domestic supply obligations of 30 per cent of total coal production.

“We are securing 150 million tonnes first. Smelter allocations will not be recognised as DMO. Hopefully, should there be any shortfall later, we can increase the allocation,” Tri said at the ESDM Ministry on Monday, 9 March 2026.

The DMO allocation is primarily designated for strategic sectors such as power generation and the fertiliser industry, which depend heavily on domestic coal supplies.

The Indonesian Association of Private Power Producers (APLSI) has highlighted current coal supply conditions for coal-fired power plants (PLTU). This year has seen reduced supplies from mining companies amid uncertainty regarding 2026 production plans.

Ferry Dwi Nugraha, Deputy Chair of APLSI’s Primary Energy Value Chain Committee, noted that coal supply disruptions occurred two months ago but have since normalised following assignments to several coal producers. “There were disruptions two months ago, but conditions have begun to normalise because assignments have been made to several coal producers,” Ferry explained at the Mining Forum CNBC Indonesia, “How is Indonesia’s Mining Industry Faring?”, on Friday, 6 March 2026.

Should coal supplies continue to be disrupted, coal-fired power plants risk shutdowns that could halve existing capacity, or in the worst scenario, trigger power blackouts. “It may still be distant — PLN would consider alternatives first before resorting to blackouts. PLN could activate fuel oil-based plants, though this is not sustainable long-term given the cost difference: coal-fired power generation costs approximately IDR 1,200 per kilowatt-hour, whilst fuel oil costs around IDR 5,000 per kilowatt-hour,” Ferry explained.