PLN Accelerates Coal Procurement for Power Plants Amid Supply Crisis

State electricity firm PLN is accelerating the signing of contracts with coal suppliers to meet the needs of its power plants, according to its President Director, Darmawan Prasodjo. He stated that PLN is coordinating intensively with the Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources to expedite the contracting process and distribution of coal supplies to power stations. “We are also speeding up the contract signing process with coal suppliers, especially for medium-rank coal that has received government assignments,” Darmawan said during a press conference on Friday evening, as quoted from a live broadcast on Garuda TV’s YouTube channel on Saturday, 20 June 2026. He claimed that supplies of medium-rank coal have begun flowing to steam-powered plants (PLTUs) across various regions in Java, both those owned by PLN and by independent power producers. In western Java, supplies are being channelled to PLTU Pelabuhan Ratu, PLTU Lontar, PLTU Labuan, PLTU Suralaya units 1-8, PLTU Jawa 7, PLTU Jawa 9 and 10, and PLTU Indramayu. Meanwhile, in eastern Java, supplies are being directed to PLTU Paiton 1 and 2, PLTU Paiton 9, PLTU Rembang, PLTU Pacitan, and PLTU Tanjung Awar-Awar. Rolling blackouts occurred across parts of Java from 8 June to 19 June 2026, affecting all provinces on the island, including Jakarta. The most recent outages were reported in several areas of Yogyakarta and Serpong, South Tangerang, Banten, on Friday, 19 June 2026. Minister of Energy and Mineral Resources Bahlil Lahadalia previously identified a shortage of medium-rank coal as the trigger for the blackouts. During a working meeting with House Commission XII on 15 June 2026, Bahlil explained that the limited coal supply prevented several power plants from operating optimally. He attributed the issue to a significant gap between the domestic market obligation (DMO) price and the market price. Currently, coal for PLN is sold at a DMO price of US$70 per tonne, while the Reference Coal Price (HBA) for the first period of June 2026 reached US$121.83 per tonne for 6,322 kcal/kg coal and US$84.53 per tonne for medium-rank 5,300 kcal/kg coal. “So, the selling price to PLN is no longer viable for the companies. That is the problem,” Bahlil said. Beyond the DMO price factor, Gita Mahyarani, Executive Director of the Indonesian Coal Miners Association (APBI), pointed to other fundamental issues affecting coal availability for power generation. She cited the production cut policy implemented through the 2026 Work Plan and Budget (RKAB), which limits producers’ flexibility. “Especially now that production is in the process of adjustment through the RKAB, so producers’ room for flexibility is not as large as before,” she said.