PLN Accelerates Coal Procurement Amidst Power Outages

Indonesian state electricity company PLN is accelerating contract signings with coal suppliers to secure necessary fuel for its power plants. CEO Darmawan Prasodjo announced that PLN is collaborating with the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources to expedite both contract processes and the physical distribution of coal.

"We are also expediting the process of contract signing with coal suppliers, especially medium-rank coal, which has been assigned by the government," Prasodjo stated during a press conference. He confirmed that medium-calorific coal is already being supplied to various steam power plants (PLTUs) across Java, including those operated by PLN and private producers.

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We are also expediting the process of contract signing with coal suppliers, especially medium-rank coal, which has been assigned by the government.

The urgency follows a series of scheduled power outages in Java between June 8 and June 19, 2026. The Minister of Energy and Mineral Resources, Bahlil Lahadalia, previously identified a shortage of medium-rank coal as the cause. He explained that limited supply prevented some power plants from operating at optimal capacity. This shortage is linked to a significant price gap between coal sold under the domestic market obligation (DMO) at $70 per ton and the market price, which reached $121.83 per ton for high-calorific coal in early June 2026. "The selling price to PLN is no longer feasible for the company. That is the problem," Lahadalia noted.

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The selling price to PLN is no longer feasible for the company. That is the problem.