80% of Indonesia's Coal Is Low-Calorie, Unsuitable for Power Plants

Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed that the majority of Indonesia’s current coal production is dominated by low to medium-calorie coal. Meanwhile, high-calorie coal, which is widely needed for specific purposes including blending fuel for power plants, is becoming increasingly scarce. He detailed that out of total national coal production, only about 20% has a medium to high calorific value, ranging from 5,800 to 6,300 kcal/kg. The remaining 80% is low-calorie coal. “Indeed, regarding the current situation, high-calorie coal is becoming scarcer by the day. Out of our total 100% coal production, the medium grade of 5,000 and above, from 5,800 to 6,300, does not exceed 20%. The 80% is medium to low grade,” Bahlil said at the Palace on Monday (22/6/2026). Therefore, the government is preparing adjustment and modification measures in the management and utilisation of coal so that energy supply is maintained and power plant needs can be met. “Well, there must be modifications. We will arrange these modifications properly,” he said. Previously, Bahlil explained that the issue causing rolling blackouts in several areas of Java was not actually related to supply volume, but to the availability of medium-calorie coal needed by PLN for the blending process of steam power plant (PLTU) fuel. “It turns out what PLN complained about or requested was medium-calorie coal for blending. We have confirmed that there is no longer a problem and the government has assisted PLN to operate,” Bahlil stated. He then detailed that PLN’s coal requirement reaches approximately 154 million tonnes per year. Meanwhile, the domestic market obligation (DMO) coal supply assignment from the Ministry of ESDM to mining companies reaches around 180 to 190 million tonnes per year. “The amount already contracted by PLN is 134 million tonnes. Actually, based on the contract between PLN and entrepreneurs, it is 134 million for one year. Now it is only the 6th month. That should be no issue,” Bahlil said.