To Keep Indonesia's Lights On, Bahlil Temporarily Halted Coal Exports

Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has disclosed details regarding the coal energy needs for PT PLN (Persero) power plants, following rolling blackouts in several regions of Indonesia caused by coal supply issues. To meet the coal requirements, Bahlil temporarily halted export activities to ensure the fulfilment of the Domestic Market Obligation (DMO). Bahlil recounted that he held a meeting with Attorney General ST Burhanuddin, Head of the State Intelligence Agency (BIN) Muhammad Herindra, Deputy Speaker of the House of Representatives Sufmi Dasco, Minister of State Secretariat Prasetyo Hadi, Cabinet Secretary Tedy Indrajaya, and PLN. “We dissected what the problem was. Because this happened before in 2022 when we banned coal exports, I questioned what was actually going on,” Bahlil explained. He elaborated that the actual coal requirement for steam power plants (PLTU) owned by PLN and the private sector is 154 million tonnes. In the 2026 Work Plan and Budget (RKAB), the domestic coal supply is set at 180 million tonnes. “Those who have declared their willingness amount to 160-170 million tonnes, and those already under contract total 134 million tonnes, recently reaching 141 million tonnes. That means from January to June, out of the 154 million tonnes needed, only 13 million tonnes remain. How can coal run out in the sixth month? This is nonsense; let’s be honest, something is amiss,” Bahlil stated. Bahlil added that after checking, the problem was that the power plants require medium-calorie coal, specifically above 5,000 kcal. “This is what is needed. The government’s job is to provide the DMO; technically, it is up to you, the companies. Do not wait until the water is at your neck to shout. Because of this, under the direction of the President, who does not want a repeat incident, things are now running normally. We held back some exports; domestic needs come first,” Bahlil asserted. The government has now formed a Primary Energy Procurement Team involving the Development and Finance Comptroller (BPKP), the Inspectorate General of ESDM, PLN, and the Directorate General of Minerals and Coal. “The procurement must be transparent, and I have asked law enforcement officials to supervise so that this behaviour does not keep emerging every year,” Bahlil revealed.