DistantNews
Support us
๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Energy & Infrastructure

Perhapi Asks ESDM to Improve RKAB Governance for Stable PLTU Coal Supply

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The Indonesian Mining Experts Association (Perhapi) urges the Ministry of Energy and Mineral Resources to improve the management of Work Plan and Budget (RKAB) approvals.
  • This is to ensure a stable coal supply for Steam Power Plants (PLTU) and prevent disruptions to the Domestic Market Obligation (DMO).
  • Perhapi suggests completing RKAB approvals before the start of the year to ensure certainty in coal production and supply.

The Indonesian Mining Experts Association (Perhapi) is calling for a significant overhaul of the management of Work Plan and Budget (RKAB) approvals by the Ministry of Energy and Mineral Resources. Perhapi's Industrial Relations Chairman, Ardhi Ishak Koesen, stated that the recent electricity blackouts in the Java, Madura, and Bali (Jamali) system highlight the urgent need for these improvements.

The core issue, according to Perhapi, is the uncertainty surrounding coal production figures allowed for concession holders. This uncertainty directly impacts the fulfillment of the Domestic Market Obligation (DMO), which ensures a portion of coal production is reserved for domestic needs. Koesen emphasized that simply having signed supply contracts between mining companies and PT PLN (Persero) does not guarantee coal availability on the ground, as power plants require consistent fuel supply to operate.

With the uncertainty of coal production figures that can be carried out by concession holders, the delivery of coal for the domestic market (domestic market obligation/DMO) is also disrupted.

โ€” Ardhi Ishak KoesenExplaining the impact of uncertain production figures on coal supply.

Perhapi suspects that delays in RKAB approvals and reductions for 2026 have led to unpredictable production allocations for mining companies. This unpredictability, in turn, affects their ability to meet domestic coal supply obligations. To address this, Ardhi strongly advocates for the completion of RKAB approvals to occur before the beginning of the calendar year for which they are intended, providing much-needed stability for the energy sector.

The supply contracts that have been signed between mining companies and PT PLN (Persero) do not automatically guarantee the availability of coal in the field.

โ€” Ardhi Ishak KoesenHighlighting the need for consistent supply beyond signed contracts.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.