Minister Bahlil Baffled by PLN's Coal Shortage: 'What Kind of Sorcery Is This?'

Energy and Mineral Resources Minister Bahlil Lahadalia has revealed that coal stocks for PT PLN (Persero) power plants are running low as of June 2026. He noted this is despite PLN having received large quantities of coal since the beginning of the year. According to Bahlil, PLN should not be experiencing a coal shortage, especially since the domestic market obligation (DMO) scheme allocates 190 million tonnes of coal per year, with PLN’s annual requirement standing at 154 million tonnes. By June 2026, PLN had signed contracts for 141 million tonnes of coal out of its total annual requirement of 154 million tonnes. “That means there are only 13 million left. How can the coal run out in June? What kind of Abuleke sorcery is this? I’m being honest here. It means something is up,” Bahlil said during the CNBC Energy Forum in Jakarta on Thursday, 25 June 2026. He assessed that the depletion of PLN’s stock is due to a dominance of low-calorie coal, making fuel consumption at the plants more wasteful. According to Bahlil, the plants require a blend of medium-calorie coal to maintain operational efficiency. “It turns out we checked and there is medium coal with a calorie content above 5,000 kcal per kg for blending. This is what is needed. Now, if the government provides the DMO, the technicalities are your responsibility, PLN. Don’t wait until the water is up to your neck before you start shouting,” he said. Nevertheless, several analysts believe the minimal supply of medium-calorie coal is inseparable from the government’s policy of cutting national coal production. Padjadjaran University energy economics lecturer Yayan Satyakti stated that the production target cut in the 2026 Coal Work Plan and Budget has further narrowed production space. In 2026, the government set a production target of around 600 million tonnes, lower than the realised production of 790 million tonnes in 2025. According to Yayan, amidst this production limitation, the medium-calorie coal needed by power plants is being absorbed more by the export market. Meanwhile, the DMO obligation for domestic needs is largely being met using low-calorie coal. “The current electricity crisis is primarily caused by a failure in supply and production planning, with pricing policy acting as a distortion that worsens the root problem,” Yayan said.