Perhapi Urges Energy Ministry to Reform RKAB Governance to Secure Coal Supply for Power Plants

The Indonesian Mining Experts Association (Perhapi) has urged the Ministry of Energy and Mineral Resources (ESDM) to use the recent evaluation of power outages in the Java, Madura, and Bali (Jamali) system as a catalyst to reform the governance of Work Plan and Budget (RKAB) approvals. The aim is to ensure the certainty of coal supply for steam power plants (PLTU).

Ardhi Ishak Koesen, Chairman of Industrial Relations at Perhapi, stated that uncertainty over production figures disrupts the fulfilment of the Domestic Market Obligation (DMO) for coal. He noted that supply contracts signed between mining companies and PT PLN (Persero) do not automatically guarantee the physical availability of coal, as power plants require regular fuel deliveries to maintain operations.

He suspects that the slow approval process and cuts to the 2026 RKAB have created production allocation uncertainty for mining companies, consequently impacting their ability to meet domestic supply obligations. Ardhi therefore urged the government to ensure that RKAB approvals are finalised before the start of the operating year.