Bahlil: Coal Shortage Not Due to Supply, but PLN's Contract and Logistics Management
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has stated that the shortage of coal needed by PT PLN (Persero) power plants is not due to a lack of supply. According to him, the issue is more related to procurement contracts and logistics management, which are the responsibility of PLN.
Bahlil made this statement following reports of a need for an additional 18 million tonnes of medium-calorie coal for power plants. He emphasised that the government, through the Directorate General of Minerals and Coal, has provided a more than sufficient allocation. “The Director General of Minerals and Coal has assigned national coal companies a total of 180 to 190 million tonnes. Of that, 134 million tonnes have been contracted. So where is the shortage?” Bahlil said.
He explained that PLN’s total annual coal requirement for its power plants is around 154 million tonnes. Therefore, the root of the problem does not lie in the availability of coal but in the technical processes of getting the coal to the plants. “The technicality of getting it to the power plant is not the task of the Director General of Minerals and Coal. That is a technical matter of PLN’s logistics management,” he stated.
Bahlil also revealed that he has asked PLN to conduct a thorough evaluation of its supply chain and operational systems to prevent a recurrence of rolling blackouts. “I have spoken with the President Director, and I said to immediately take measurable steps so that undesirable events do not happen,” he added.
Previously, PLN had acknowledged the need to improve its coal supply chain governance and strengthen its power plants to maintain the reliability of the electricity system. PLN’s President Director Darmawan Prasodjo stated that the supply of primary energy matching the plants’ specifications is currently running smoothly. He also confirmed that one of the two independent power producer (IPP) plants that had previously experienced technical issues has now resumed operation and been reintegrated into the Java electricity system since Sunday evening.