PLN Secures Medium-Rank Coal to End Java Blackouts

Indonesia's state-owned electricity firm, PLN, is actively working to resolve the rolling blackouts that have plagued Java by channeling medium-rank coal to various steam power plants. President Director Darmawan Prasodjo announced the immediate supply of coal to facilities in both western and eastern Java, including major plants like PLTU Suralaya and PLTU Paiton.

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On behalf of PLN, we would like to extend our deepest apologies for the rolling blackouts experienced across Java.

PLN is expediting its coal procurement process, focusing on medium-rank coal with a calorific value of 5,200 kcal per kg GAR, as assigned by the government. Darmawan has been in close coordination with the Ministry of Energy and Mineral Resources (ESDM) to swiftly finalize contracts with coal suppliers. He expressed optimism that these measures will ensure a smooth electricity supply.

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We are also expediting the contract-signing process with coal suppliers, particularly for the medium-rank coal allotments assigned by the government.

Despite these efforts, PLN faces a significant annual coal requirement of 154 million metric tons, with contracts secured for 134 million tons, leaving a deficit of about 20 million tons. The ESDM Ministry acknowledges the difficulty in securing this specific grade of coal and has formed a task force to address the shortfall.

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With the allocation of medium-rank coal and direct guidance from ESDM Minister Bahlil Lahadalia, PLN will implement the improvements to ensure smooth electricity supply.

To further stabilize supply, the ESDM Ministry is considering revising the domestic coal pricing mechanism. This move aims to address rising production costs for mining companies and ensure they can meet their Domestic Market Obligation (DMO), which currently caps coal prices for PLN at $70 per ton. The rolling blackouts affected multiple regions across Java from June 8 to June 19, 2026.

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The price adjustment is being weighed to help producers meet their Domestic Market Obligation (DMO), which currently caps the price of coal for PLN at US$70 per ton.