Bahlil Forms Coal Procurement Team to Address PLN's Supply Hurdles

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has formed a coal procurement team to address PT PLN (Persero)’s challenges in meeting its power plant fuel requirements. “In order to supervise primary energy so this does not continue, we have formed a procurement team. PLN, the Directorate General of Minerals and Coal, and BPKP,” Bahlil stated during a working meeting with Commission XII of the House of Representatives at the Parliament Complex in Senayan, Jakarta, on Monday. Bahlil explained that PLN’s total coal requirement reaches 154 million metric tonnes per year. Of that amount, the government has assigned coal companies to supply PLN with a total volume of around 190 million tonnes. “Of the 190 million tonnes, around 150 to 160 million tonnes have been confirmed, and 134 million tonnes have been contracted,” Bahlil said. With 134 million tonnes already under contract, approximately 20 million tonnes remain uncontracted to meet the 154 million tonne requirement. However, Bahlil acknowledged that PLN faces obstacles in securing medium-calorie coal because the selling price to PLN is low. “I must admit that within the 134 million tonnes, PLN needs medium-calorie coal, which is of better quality,” Bahlil noted. He added that medium-calorie coal is becoming increasingly scarce, and companies are reluctant to supply it to PLN at the low price. Companies sell coal to PLN based on the domestic market obligation (DMO) price of US$70 per tonne, while the reference coal price (HBA) for the first period of June 2026 is set at US$121.83 per tonne. “So, the selling price to PLN leaves nothing for the company. That is the problem,” Bahlil said. To address this issue, Bahlil has received instructions from President Prabowo Subianto to coordinate with PLN, the Directorate General of Minerals and Coal at the ESDM Ministry, and BPKP to ensure PLN’s coal supply. “This team is being formed so there is no deceit among us. We are tired of saying one thing, hearing another, writing something else, reading differently, and doing yet another thing. I know there is something, but let it be. We all understand, and the most important thing is that we provide the best service for the country,” Bahlil concluded.