Bahlil Prepares Regulation to Prioritise Domestic Coal Supply

Jakarta — Energy and Mineral Resources Minister Bahlil Lahadalia is preparing a regulation requiring that domestic coal demand be satisfied before export permits are issued. The policy will take the form of a Ministerial Decree (Kepmen).

Bahlil explained that the policy is intended to ensure coal supplies for steam power plants (PLTUs) remain secure.

“We have prepared a ministerial decree stipulating that all coal products we produce must first meet domestic requirements, and only the surplus can be exported,” Bahlil stated during a Full Cabinet Session at the State Palace on Tuesday 17 March 2026.

According to him, the policy is based on the principle that coal resources are state property, whilst companies only receive concessions to manage them.

“Coal is not company property but state property. We are only granting concessions to business operators, but the substance remains state-owned, so the orientation must be towards state interests. This concerns coal,” he said.

On another matter, Bahlil noted that the government had received reports suggesting coal supplies for steam power plants were becoming depleted. However, he disputed this assessment.

Based on government data, coal availability across all PLTUs—both those owned by state electricity company PLN and independent power producers (IPPs)—currently averages 14 days, which remains within national minimum standards.

“We report that across all PLTUs, both IPPs and those owned by PLN, coal availability currently averages 14 days. This remains within the national minimum standard,” he stated.