Bahlil Lahadalia Forms Procurement Team to Resolve Coal Supply Constraints for PLN

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has formed a procurement team for medium-calorie coal to overcome constraints faced by state electricity company PT PLN (Persero) in meeting the needs of its power plants. This was conveyed by Bahlil during a working meeting with Commission XII of the House of Representatives (DPR RI) in Senayan, Jakarta. “In order to supervise primary energy so that this does not continue, we are forming a procurement team. PLN, the Directorate General of Minerals and Coal (Dirjen Minerba), and the BPKP,” Bahlil said on Monday, 15 June 2026. He explained that PLN’s total coal requirement reaches 154 million metric tons per year. Of that amount, the government has assigned coal companies to supply PLN with a total volume of around 190 million tons. “Of the 190 million tons, around 150–160 million tons have been confirmed and 134 million tons have been contracted,” he stated. Under these conditions, out of the 154 million tons of coal needed by PLN, 134 million tons are already under contract. “That means there is a shortfall of 20 million tons that has not yet been contracted,” Bahlil said. However, he acknowledged that PLN is constrained in meeting its need for medium-calorie coal because the selling price to PLN is low. “I must admit that within the 134 million tons, PLN requires medium coal, with reasonably good calorific value,” Bahlil noted. Meanwhile, Bahlil continued, medium-calorie coal is becoming increasingly scarce, and the selling price from coal companies to PLN is also cheap. Companies sell coal to PLN based on the domestic market obligation (DMO) price of US$70 per ton. In contrast, the coal reference price (HBA) for the first period of June 2026 was set at US$121.83 per ton. “So, the selling price to PLN is no longer viable for the companies. That is the problem,” Bahlil said. Regarding this issue, Bahlil has received instructions from President Prabowo to coordinate with PLN, the Directorate General of Minerals and Coal at the ESDM Ministry, and the BPKP concerning the fulfilment of PLN’s coal needs. “This formation of a team is so there is no deceit among us. We are tired of saying one thing here, another thing there, writing one thing, reading another, and doing something else. I know there is something, but enough. We all understand each other; what is important is that we provide the best service for the country,” he stated.