PLN's Coal Supply for Power Plants Falls Short by 20 Million Tonnes
The Ministry of Energy and Mineral Resources (ESDM) has stated that state-owned PT PLN (Persero) requires 154 million tonnes of coal annually. However, current supply availability is still experiencing a shortfall of around 20 million tonnes, as contract realisation has only reached 134 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 thorough evaluation so that fuel requirements for the national electricity system can be met optimally.
“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 ESDM Ministry Office in Jakarta on Wednesday (17/6/2026).
The government is seeking to synchronise PLN’s actual demand volume with 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, of which 134 million tonnes have been fulfilled based on contracts. The shortfall of 20 million tonnes is currently being addressed through adjustments,” he added.
The government is optimistic that the supply shortage can be resolved promptly 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 be above 600 million tonnes. It will be adjusted to domestic needs. There is a Domestic Market Obligation (DMO) that has been set,” he concluded.
Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia disclosed details regarding the primary energy or coal requirements for PLN’s coal-fired power plants (PLTU). This addressed the issue concerning the lack of coal stock for PLN’s PLTUs.
Bahlil stated that PLN’s annual primary energy requirement is 154 million tonnes of coal, for which the government has assigned coal companies a task of approximately 190 million tonnes.
“From that 190 million tonnes, confirmations have been made for 150-160 million tonnes. Contracts have been executed 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 some time ago his party held a meeting with PLN. 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 and its price is cheap, where we set a benchmark of US$70 per tonne. However, its sulphur ratio is above 10 to 12, so the selling price to PLN offers no margin for the companies, that is the trouble. This is what we are asking to be prioritised,” Bahlil explained.
Under the direction of President Prabowo Subianto, Bahlil added, the government has formed a Procurement Team together with PLN, the Inspector General, the Director General of Minerals and Coal, and the Finance and Development Supervisory Agency (BPKP) to resolve the primary energy issue. “So that there is no deceit among us, let us not keep cheating each other,” Bahlil stressed.