PLN Power Plants Face 20 Million Tonne Coal Shortfall, Bahlil Outlines Response
The Ministry of Energy and Mineral Resources (ESDM) has revealed that PT PLN (Persero) requires 154 million tonnes of coal to operate its power plants throughout the year. However, contracted supply to date has only reached 134 million tonnes, leaving a shortfall of approximately 20 million tonnes.
Deputy Minister of ESDM Yuliot Tanjung stated that the government is conducting evaluations and adjustments to ensure PLN’s primary energy needs are met, in order to maintain the reliability of the national electricity supply. According to Yuliot, Minister Bahlil Lahadalia has requested a thorough evaluation of PLN’s coal requirements and the government is committed to fulfilling the supply gap.
“The Minister has conveyed that an evaluation of all PLN’s needs has been carried out, and it will be fulfilled,” he said at the Ministry of ESDM office in Jakarta.
The government is working to synchronise PLN’s actual volume requirements with procurement commitments from domestic coal producers. This aims to guarantee a reliable electricity supply for the public and avoid the risk of stock deficits at power generation units.
“It was conveyed that PLN’s need is 154 million tonnes, with 134 million tonnes already secured under contract. The remaining 20 million tonne shortfall is being addressed through adjustments,” he added.
The government is optimistic the supply gap can be resolved promptly through production adjustments in the Work Plan and Budget (RKAB). The initial RKAB target for this year was around 600 million tonnes of coal. “Certainly production will exceed 600 million tonnes, adjusting to domestic needs as the DMO has been set,” he concluded.
Previously, Minister Bahlil Lahadalia openly discussed the primary energy needs for PLN’s coal-fired power plants, addressing concerns over coal stock shortages. Bahlil explained that PLN’s annual primary energy requirement is 154 million tonnes, while the government has assigned coal companies a task of approximately 190 million tonnes.
“From the 190 million tonnes, confirmed amounts are around 150 to 160 million tonnes. Contracts have been signed for 134 million tonnes, meaning from PLN’s total need of 154 million tonnes, only 20 million tonnes remain uncontracted,” Bahlil clarified during a working meeting with Commission XII of the DPR.
To resolve this, Bahlil said he recently held a meeting with PLN, which revealed that the company requires medium-grade coal, a type that is becoming increasingly scarce. “Medium-grade coal is dwindling and its price is cheap, with a benchmark set at US$70 per tonne. Meanwhile, its sulphur ratio is above 10 to 12, making the selling price to PLN unattractive for companies. That is the trouble. We have asked for this to be prioritised,” Bahlil explained.
Following a directive from President Prabowo Subianto, Bahlil said the government is forming a Joint Procurement Team involving PLN, the Inspector General, the Directorate General of Minerals and Coal, and the Finance and Development Supervisory Agency (BPKP). “So there is no deceit among us, let’s not keep cheating each other,” Bahlil stressed.