Bahlil Evaluates DMO Coal Price for Power Plants, Here's Why

Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has opened the option to evaluate the domestic coal price, particularly for the needs of PT PLN (Persero) power plants. The government is recalculating the coal price formula for the domestic market (Domestic Market Obligation/DMO).

The coal price for domestic power plants has not changed since 2018. The government set the special coal price for PLN at US$70 per tonne.

Bahlil explained that the government needs to be prudent in setting prices due to increased operational cost burdens at the upstream level. The government is also considering various updated economic parameters in the mining sector.

“We are calculating the plus-minus so that PLN is not disadvantaged, but the entrepreneurs are also not disadvantaged,” Bahlil said when met at the Coordinating Ministry for Economic Affairs office in Jakarta on Wednesday (18/6/2026).

Bahlil stressed that the plan to evaluate the DMO price was triggered by field conditions where the stripping ratio (SR) for medium-calorie coal has become increasingly high. This is calculated to have increased the production costs that entrepreneurs must bear compared to previous years.

“Oh yes, for medium coal, the SR is already at 8-12%, so the production cost is already high. So we also have to be wise so that our entrepreneur friends are not bought at a very cheap price. If they buy at a loss-making price, it’s impossible. Because we also have to protect the entrepreneurs so they don’t lose money,” he explained.

In addition to production costs, the government is also hearing complaints from business actors regarding the Coal Reference Price (HBA) benchmark, which is considered to have not changed since 2019.

“That is indeed one of the considerations that we will calculate,” said Bahlil.

On the other hand, the government has confirmed that the coal supply for PLN until mid-year is relatively secure despite technical constraints on certain calorie types. Out of a total requirement of 154 million tonnes in 2026, PLN has already secured contract commitments for 134 million tonnes.

“From the total PLN requirement of 154 million tonnes in 2026, PLN has already contracted 134 million. So there is only about 18 to 20 million remaining. So overall, there is no problem,” he concluded.