Indonesia Minister Questions Looming Coal Shortage for Power Plants

Minister of Energy and Mineral Resources Bahlil Lahadalia expressed bewilderment over the projected shortage of coal for state electricity company PT PLN (Persero) in June 2026. He questioned the situation, noting that PLN had received substantial coal supplies since the beginning of the year and has a significant domestic market obligation (DMO) allocation.

"That means there are only 13 million [tons left]. How can coal run out in the sixth month? What kind of 'Abuleke' science is this? I'm being honest. It means there's something going on," Bahlil stated at the Energy Forum CNBC in Jakarta on Thursday, June 25, 2026. He suggested that the dwindling stock might be due to a prevalence of low-calorie coal, leading to inefficient consumption at power plants. Bahlil emphasized the need for a mix of medium-calorie coal for operational efficiency, stating, "Turns out we checked, there's medium coal with a calorie above 5,000 kcal per kg for mixing. This is what's needed. Well, if the government provides DMO, technically it's you (PLN), the company. Don't wait until the water is at your neck to cry out."

However, some observers link the scarcity of medium-calorie coal to the government's policy of cutting national coal production. Yayan Satyakti, an energy economics lecturer at Padjadjaran University, pointed out that the reduced production target in the 2026 coal Work Plan and Budget (RKAB) limits output. The government set a 2026 production target of around 600 million tons, lower than the 2025 realization of 790 million tons. Satyakti noted that amidst these production constraints, medium-calorie coal, essential for power plants, is increasingly absorbed by the export market. Meanwhile, the DMO for domestic needs is largely met with low-calorie coal.

"The current electricity crisis is primarily caused by failures in supply and production planning, with pricing policies distorting the root of the problem," Yayan concluded.