Bahlil: Coal Quality Affects PLN's Electricity Supply Stability

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has stated that coal quality is one of the main factors affecting the stability of electricity supply from state-owned PT PLN (Persero). This issue, Bahlil continued, contributed to the rolling blackouts that recently occurred on the island of Java. “It turns out we checked and there is medium-grade coal with a calorific value above 5,000 for blending. This is what is needed for power plant operations,” the Minister said in Jakarta on Thursday. He explained that when coal quality falls below PLN’s requirements, a larger volume of coal must be used to generate the necessary electricity. Bahlil noted that the total annual coal requirement for PLN’s power plants is approximately 154 million metric tonnes (MT). Under the domestic market obligation (DMO) rules imposed on exporters, PLN can secure a supply of up to 180-190 million MT. Bahlil said that 141 million MT of coal had already been received by PLN, but he subsequently received a report that the coal supply for electricity production would run low by June 2026. “This means from 1 January to June, out of 154 million minus 141 million, that leaves only 13 million. How can the coal run out in the sixth month? What kind of logic is this? I am being honest here, it means something is going on,” he stated. Bahlil assessed that PLN should have been able to mitigate this problem before it impacted the wider public through the recent rolling blackouts. “If the government provides the DMO, the technicalities are up to the company, PLN. Don’t wait until the water is up to your neck before you shout,” he said. The Minister assured that such an incident would not be repeated and that the government is focused on meeting domestic electricity needs. “Because of this, under the direction of the President, we do not want this incident to happen again. Things are now running normally. We have held back some exports that were supposed to go overseas to fulfil domestic needs first,” he stated. The government is also monitoring the coal procurement process for PLN to prevent a recurrence of supply issues that could threaten national energy security. “The procurement must be transparent. And I have asked law enforcement officials to supervise so that this kind of behaviour does not keep emerging every year,” Bahlil concluded.