Power Producers Reveal Latest Coal-Supply Conditions for Coal-Fired Power Plants

Jakarta – The Indonesian Private Power Producers Association (APLSI) has spoken about the latest coal-supply conditions for coal-fired power plants. In essence, this year there has been a reduction in supply from mining entities.

Ferry Dwi Nugraha, Deputy Chair of the Primary Energy Value Chain Committee at APLSI, said there was a drop in coal supply from suppliers due to production under the 2026 Work Plan and Budget (RKAB) not yet being clear.

‘If there was a disruption two months ago, it has begun to normalise because there has been a assignment to several coal producers,’ Ferry said during the CNBC Indonesia Mining Forum, ‘What’s Up with Indonesia’s Mining Industry?’, Friday (6 March 2026).

If coal supply continues to be constrained, Ferry warned, the impact is likely that coal-fired plants will experience shutdowns by de-rating half of their existing capacity. Worse, there could be power outages.

‘This is still somewhat distant; PLN will assess first before load-shedding. Coal has around 1,200 kcal. It might burn oil but not for long (the electricity would be affected),’ Ferry explained.

Previously, Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that coal supply for PLN’s power generation needs would remain secure through April 2026.

He said the government is continually monitoring domestic coal needs while organising production through RKAB.

‘I can assure you there is no issue from March to April. We are following the development of coal needs for PLN, while maintaining quality and reasonable prices. This is what we are organising now,’ Bahlil said at a press conference at the Ministry of ESDM, quoted on Wednesday (4 March 2026).

As is known, Bahlil emphasised his commitment to reducing coal production in 2026. This is done to maintain market balance.

According to Bahlil, Indonesia itself supplies around 500-550 million tonnes of coal, or 43% of the world’s total trade volume reaching 1.3 billion tonnes per year. This condition is cited as the root cause of falling coal prices.

‘The supply is large, demand is small, therefore the price is cheap. We must understand that the management of our natural resources is a state-owned asset and must be managed with care,’ Bahlil said.

He also stressed that coal is state-owned and must be managed sustainably. The RKAB framework is focused on ensuring national needs are met first.