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PLN Requires 154 Million Tonnes of Coal for Power Plants, Still Facing This Shortfall

| Source: CNBC Translated from Indonesian | Energy
PLN Requires 154 Million Tonnes of Coal for Power Plants, Still Facing This Shortfall
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has recorded that PT PLN (Persero) requires 154 million tonnes of coal per year. However, current supply availability is still experiencing a shortfall of around 20 million tonnes, as contract realisation has only reached 132 million tonnes.

Deputy Minister of ESDM Yuliot Tanjung explained that the government is continuously making adjustments to close the gap in primary energy supply. He stressed that the ministry is conducting a comprehensive evaluation to ensure that fuel requirements for the national electricity system can be optimally met.

‘So, the Minister has already conveyed that an evaluation has been carried out for all of PLN’s needs. And those will be fulfilled,’ he said when met at the Ministry of ESDM office in Jakarta on Wednesday (17/6/2026).

The government is working to synchronise PLN’s actual volume requirements with the procurement commitments from domestic coal producers. This is to guarantee the reliability of electricity supply for the public and to avoid the risk of stock deficits at power plant units.

‘It was conveyed yesterday that PLN’s requirement is 154 million tonnes, and what has been fulfilled based on contracts is 132 million tonnes. Efforts are underway to adjust for the 20 million tonne shortfall,’ he added.

The government is optimistic that the supply shortage can be resolved soon through production adjustment policies within the Work Plan and Budget (RKAB). Initially, the RKAB target for this year was around 600 million tonnes of coal.

‘Certainly, production will exceed 600 million tonnes. It will be adjusted to meet domestic needs. There is a set Domestic Market Obligation (DMO),’ he concluded.

Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia disclosed details regarding the primary energy or coal needs for the steam power plants (PLTU) owned by PT PLN (Persero). This addressed issues concerning the lack of coal stock for PLN’s PLTUs.

According to Bahlil, PLN’s annual primary energy requirement is 154 million tonnes of coal. The government has assigned coal companies to supply approximately 190 million tonnes.

‘Out of the 190 million tonnes, 150 to 160 million tonnes have been confirmed. Contracts have been signed for 134 million tonnes, meaning that from PLN’s total requirement of 154 million tonnes, only 20 million tonnes remain uncontracted,’ Bahlil explained during a working meeting with Commission XII of the House of Representatives on Monday (15/6/2026).

To resolve this, Bahlil said that his party held a meeting with PLN some time ago. From that meeting, it was revealed that PLN requires medium-grade coal, but this type of coal is becoming increasingly scarce.

‘Meanwhile, medium-grade coal is becoming scarcer by the day, and its price is cheap, with a benchmark set at US$70 per tonne. However, with a sulphur ratio above 10 to 12, the selling price to PLN is not viable for the companies, and that is the trouble. We have asked for this to be prioritised,’ Bahlil explained.

Following the directive of Indonesian President Prabowo Subianto, Bahlil stated that to resolve the primary energy issue, the government has formed a Procurement Team together with PLN, the Inspector General, the Directorate General of Minerals and Coal, and the Finance and Development Supervisory Agency (BPKP). ‘So that there is no deceit among us, let us not keep deceiving each other,’ Bahlil asserted.

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