Energy Minister Guarantees No Power Cuts, Explains Coal Supply Strategy

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has confirmed there are no plans for power cuts in the foreseeable future. This assurance was given following intensive coordination to maintain the reliability of the national energy supply. “God willing, no,” Bahlil stated during a briefing at the Coordinating Ministry for Economic Affairs office in Jakarta on Thursday (18/6). The statement dispels public concerns regarding the stability of the national electricity supply. Bahlil explained that he held strategic discussions with Coordinating Minister for Economic Affairs Airlangga Hartarto. The main focus of the meeting was ensuring maximum electricity service for the public, including strengthening the financial capacity of PT PLN (Persero). One crucial point discussed was the compensation and subsidy payment scheme for PLN. This measure is being taken so that the state electricity company has adequate liquidity to continue supplying power without technical or financial constraints. Regarding primary energy, Bahlil detailed that PLN’s total coal requirement reaches 154 million metric tons per year. Currently, PLN has secured contracts for 134 million tons, leaving a shortfall of approximately 20 million tons which is being addressed. To overcome the challenge of procuring medium-calorie coal, the ESDM Minister has formed a special procurement team involving PLN, the Directorate General of Minerals and Coal (Ditjen Minerba), and the BPKP. The formation of this team is a direct instruction from President Prabowo Subianto. Bahlil acknowledged the challenges in fulfilling medium-calorie coal needs due to the significant price disparity between the Domestic Market Obligation (DMO) price and the market price (HBA). However, he stressed that cross-agency coordination will ensure that state interests and public service remain the top priority. “This (the team formation) is so there is no deceit among us. We understand each other, the important thing is we provide the best service for the country,” he concluded.