Indonesia Urges PLN to Speed Up Coal Contracts to Secure Power Plant Supply

Indonesia's Ministry of Energy and Mineral Resources (ESDM) is pressing state electricity company PT PLN (Persero) to accelerate the finalization of coal procurement contracts. The directive aims to secure the necessary coal supply for power plants, particularly steam power plants (PLTU), to meet demand through the end of 2026.

Tri Winarno, Director General of Mineral and Coal at ESDM, stated that while the government has assigned coal mining companies to supply more than PLN's needs in 2026, these assignments must be quickly converted into contracts. "Contracts are the basis for the implementation of coal delivery to PLTU. Therefore, we continue to push PLN EPI to expedite the contract process so that the assignments given can be immediately realized into deliveries," Tri explained in a written statement on Saturday, July 11, 2026.

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Contracts are the basis for the implementation of coal delivery to PLTU. Therefore, we continue to push PLN EPI to expedite the contract process so that the assignments given can be immediately realized into deliveries.

ESDM estimates PLN's total coal requirement for 2026 at 154 million metric tons. The Directorate General of Mineral and Coal has assigned a total volume of 212 million metric tons through the Domestic Market Obligation (DMO) scheme. However, by May 2026, only approximately 144 million metric tons of this assignment had been contracted, with an estimated realization of 130.5 million metric tons delivered.

Tri emphasized that speeding up contract finalization is crucial for translating government assignments into actual coal supplies for power plants. The Directorate General is actively coordinating with PT PLN Energi Primer Indonesia (PLN EPI) and mining companies to ensure timely delivery of the required coal volumes and specifications. The Ministry is also monitoring DMO compliance for non-electricity sectors to ensure domestic needs are met.

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The government continues to ensure that PLN's coal needs in the second half of 2026 can be met according to schedule and power plant specifications. For this, coordination and acceleration of contract finalization need to be continuously carried out.