PLN: Rotating Blackouts Triggered by Disruptions at Two Major Power Plants

State-owned electricity company PT PLN has revealed that rotating blackouts affecting several areas on Java Island were triggered by disruptions at two large power plants that are currently unable to operate. PLN Executive Vice President of Corporate Communications and Social and Environmental Responsibility, Gregorius Adi Trianto, stated that the disruptions have reduced the Java system’s power supply capacity, forcing the company to implement temporary load management to maintain the balance between supply and demand. “This measure was taken because of operational technical constraints at power plants and because two large generating units experienced disruptions, rendering them temporarily inoperative and reducing the system’s power supply capability,” Gregorius said in a written statement on Friday, 19 June 2026. He added that PLN is currently accelerating the recovery process by optimising power supply from other plants and managing system operations to minimise the impact on customers. “PLN apologises for the inconvenience experienced by customers. This load management is temporary and will be gradually halted as the system supply condition improves,” Gregorius said. Minister of Energy and Mineral Resources Bahlil Lahadalia previously stated that the rotating blackouts occurred because several coal-fired power plants experienced a shortage of medium-calorie coal supply. During a working meeting with House Commission XII on 15 June 2026, Bahlil explained that the limited coal supply prevented several plants from generating electricity optimally. Bahlil claimed the issue is linked to the significant gap between the coal price for domestic needs, known as the domestic market obligation, and the market price. Currently, coal for PLN is sold at a DMO price of US$70 per tonne, while the Coal Reference Price 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-calorie 5,300 kcal/kg coal. “So, the selling price to PLN is no longer viable for the companies. That is the problem,” Bahlil said. Chairman of the Indonesian Mining Experts Association, Sudirman Widhy, noted that most mining companies holding medium-calorie coal reserves have actually fulfilled their DMO obligation of 25-30 percent of total production as required by the government. However, he said many companies are reluctant to increase supply to PLN because the DMO price no longer reflects current production costs. The price has remained unchanged since it was first set in 2018, while mining operational costs have continued to rise in recent years. Sudirman explained that increases in the stripping ratio, fuel costs, and spare parts prices have driven up mining production costs. This situation has led some companies to prefer selling coal to the non-PLN domestic market or export markets at more competitive prices. “Perhapi urges the government to re-evaluate the DMO coal price benchmark for PLN. A price adjustment is necessary so that mining companies retain an economic incentive to supply coal to national power plants without incurring losses,” he said.