Bahlil Reveals Coal Supply Issues for PLN Power Plants

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed details regarding the primary energy or coal requirements for the steam power plants (PLTU) owned by PT PLN (Persero), addressing concerns about coal stock shortages for PLN’s power plants.

Bahlil stated that PLN’s annual primary energy requirement is 154 million tonnes of coal, while the government has assigned coal companies to supply approximately 190 million tonnes. “From the 190 million tonnes, 150 to 160 million tonnes have been confirmed. Contracts have been signed for 134 million tonnes, meaning that from PLN’s total requirement of 154 million tonnes, only 20 million tonnes remain uncontracted,” Bahlil explained during a working meeting with Commission XII of the House of Representatives on Monday.

To resolve this, Bahlil said he recently held a meeting with PLN. It was revealed that PLN requires medium-grade coal, but this type of coal is becoming increasingly scarce. “Meanwhile, medium-grade coal is dwindling and its price is cheap, with a benchmark set at US$70 per tonne. However, the stripping ratio is above 10 to 12, making the selling price to PLN unprofitable for the companies, and that is the trouble. This is what we are asking to be prioritised,” Bahlil explained.

Under the direction of President Prabowo Subianto, Bahlil said the government has formed a Joint Procurement Team together with PLN, the Inspector General, the Directorate General of Minerals and Coal, and the Development Finance Comptroller (BPKP) to resolve the primary energy issue. “So that there is no deceit among us, let us not keep cheating each other,” Bahlil stressed.