Government Tightly Controls Coal Supply for Indonesian Power Plants

Jakarta - The government continues to ensure the fulfilment of the public’s energy needs, including electricity. As part of this effort, the Ministry of Energy and Mineral Resources (ESDM) temporarily suspended certain coal exports to secure the availability of coal with the required calorific value for primary energy supply to PT PLN (Persero) power plants. To date, approximately 141 million metric tonnes of coal have been secured, out of a total annual requirement of 154 million metric tonnes. Ministry of ESDM Spokesperson Dwi Anggia stated that the volume of exports temporarily held was adjusted to the operational needs of the power plants, and coal export activities have now returned to normal. “This step was taken as part of the Ministry of ESDM’s supervisory function as a regulator. Along with the improvement in domestic supply conditions, coal export activities are now running normally again,” Anggia said in a written statement on Friday (26/6/2026). Furthermore, as part of efforts to strengthen stability and mitigate the risk of future electricity supply disruptions, the procurement process for PLN’s primary energy will be supervised more strictly. The supervision process will involve a team consisting of the Development Finance Comptroller (BPKP), the Inspectorate General of the Ministry of Energy and Mineral Resources, the Directorate General of Mineral and Coal, and PLN. Anggia conveyed that this supervision is normal and necessary to ensure the proper implementation of the Domestic Market Obligation (DMO). “The supervisory measures to be carried out by the team from BPKP, the Ministry of ESDM, and PLN are conducted to ensure that the DMO obligation is properly implemented to guarantee the availability of coal supply for electricity,” Anggia explained. Regarding this matter, there are no new rules to impose additional restrictions, as the necessary regulatory framework is already in place. The government is currently focusing on the effective implementation and enforcement of existing regulations, including the provisions in Law Number 2 of 2025 concerning the Fourth Amendment to Law Number 4 of 2009 on Mineral and Coal Mining, which regulates the implementation of the Domestic Market Obligation (DMO).