Bahlil: Coal Quality Affects PLN's Electricity Supply Stability

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has assessed that coal quality is one of the primary factors regarding the stability of PT PLN (Persero)’s electricity supply.

This, Bahlil continued, led to the rotating power outages that occurred on Java Island some time ago.

“It turns out we checked and found medium-grade coal with a calorific value above 5,000 for blending. This is what is needed for power plant operations,” the Minister of ESDM said in Jakarta on Thursday.

With coal quality falling below PLN’s requirements, he added, a larger volume of coal is required to generate the necessary electricity.

Bahlil explained that the total coal requirement for PLN power plants in one year is approximately 154 million metric tonnes (MT). Based on the Domestic Market Obligation (DMO) regulations for exporters, PLN can obtain a supply of up to 180-190 million MT from that total.

Bahlil stated that 141 million MT of coal has already been received by PLN. However, he subsequently received reports that the coal supply for electricity production is projected to run low by June 2026.

“This means from 1 January until June, from 154 million minus 1mu 141 million, that leaves only 13 million. How can coal run out in June? What kind of logic is this? To be honest, this implies something is wrong,” he remarked.

Bahlil believes this issue should have been mitigated by PLN before impacting the wider public through the rotating blackouts that have occurred recently.

“If the government provides the DMO, the technical execution lies with PLN and the companies. Do not wait until the water is at your throat before you scream,” he said.

The Minister of ESDM ensured that such incidents would not recur, as the government is focused on meeting domestic electricity needs.

“Because of this, following the President’s direction, we do not want this to happen again. Operations have now returned to normal. For some that were supposed to be exported, we are holding them back to prioritise domestic needs first,” he stated.

The government, he continued, is also monitoring the coal procurement process for PLN to prevent the recurrence of supply issues that could potentially disrupt national energy security.

“Procurement must be transparent. I have requested law enforcement agencies to supervise this so that this kind of behaviour does not emerge every year,” Bahlil concluded.