PLN Vows to Improve Coal Supply Chain Governance for Power Plants

PT PLN (Persero) has pledged to improve the governance of coal procurement for power plants. The commitment was made by PLN President Director Darmawan Prasodjo following rolling blackouts in several areas of Java in recent weeks. Darmawan stated the company would strengthen the management of the primary energy supply chain and enhance plant reliability to anticipate future disruptions to the electricity system. “We are continuously monitoring the improvement of the Java electricity system 24 hours a day, seven days a week,” Darmawan said in a written statement on Monday, 22 June 2026. He also apologised to the public for the inconvenience caused by the rolling blackouts in several regions. According to Darmawan, the condition of the Java electricity system began to improve after a power plant owned by an Independent Power Producer (IPP) that had previously experienced disruptions was successfully restored. The plant was re-synchronised with the Java electricity system on Sunday, 21 June 2026, at 18.00 WIB. He noted that the primary energy supply for power plants is now gradually returning to normal, with fuel meeting the required specifications now available, allowing efforts to strengthen the generation system to proceed more optimally. Previously, Darmawan stated that PLN was accelerating the supply of medium-rank coal to several Steam Power Plants (PLTU) in Java, including PLTU Pelabuhan Ratu, Lontar, Labuan, Suralaya 1-8, Jawa 7, Jawa 9 and 10, and Indramayu in West Java. In East Java, supplies are being channelled to PLTU Paiton 1 and 2, Paiton 9, Rembang, Pacitan, and Tanjung Awar-Awar. Separately, the Indef Green Transition Initiative (GTI) assessed that the recent rolling blackouts were not solely caused by a shortage of medium-calorie coal supply. The institute argued the problem is an accumulation of various structural issues in the electricity sector and coal governance. Indef GTI’s Head of Industry and Transport Decarbonisation, Andry Satrio Nugroho, highlighted a misalignment between the Domestic Market Obligation (DMO) policy and the government’s coal production quota. He explained that while mining companies are required to fulfil domestic coal needs through the DMO, the production quota has been cut from 790 million tonnes to 600 million tonnes, limiting the supply available for power plants. “If the DMO volume is mandatory, the quota for medium-calorie miners must align with that obligation. The determination of volume and quota approval should not contradict each other, as the result is a contract shortage like what is happening now,” Andry said in a written statement on Monday, 22 June 2026.