ESDM Minister demands transparency in PLN coal procurement

Jakarta (ANTARA) - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia stated that substandard coal quality and supply mismanagement were the primary factors behind the recent rolling blackouts across Java Island, warning state electricity company PT PLN to fix its internal procurement issues.

Speaking to reporters in Jakarta on Thursday, Bahlil revealed a failure to secure the proper grade of coal forced PLN to consume higher volumes of the commodity just to meet baseline power requirements.

“We conducted an investigation and found that power plant operations require medium coal with a calorie content above 5,000 for proper blending. When the quality falls below PLN's technical specifications, it requires significantly more coal to generate the necessary power," he said.

The minister expressed sharp criticism over a rapid supply depletion that threatened to exhaust PLN's coal reserves by June 2026, describing the situation as highly irregular given the robust protections offered by the government's Domestic Market Obligation (DMO) policy.

According to ministry data, PLN requires approximately 154 million metric tons (MT) of coal annually. Under current DMO regulations imposed on exporters, the state utility has access to a priority pool of up to 180–190 million MT.

Bahlil questioned how PLN managed to burn through 141 million tons of its annual allocation in just the first six months of the year, leaving a critically low balance of 13 million tons for the remaining period.

"How could our coal supply practically run out by June? What kind of science is this?" he questioned.

“I will be honest—there must be something going on behind the scenes,” Bahlil stated.

He further emphasized that PLN should have mitigated this issue before it caused public disruptions.

"The government grants the DMO, but the technical execution is on PLN. Do not just scream for help when the water is already up to your throat,” Bahlil warned the state power utility.

To restore stability to the Java grid, the government has temporarily restricted coal exports, shifting the focus entirely toward fulfilling domestic energy needs under direct orders from the President.

“Things are now running normally. We have held back on some exports to ensure domestic needs are met first," Bahlil confirmed.

Moving forward, the ESDM Ministry announced it will strictly monitor PLN’s coal procurement process to protect national energy security. Bahlil called on law enforcement agencies to intervene and audit the supply chain to prevent recurring annual shortages.

"Procurement must be completely transparent. I am asking law enforcement officials to monitor this closely so that this kind of behavior does not repeat itself every year," he concluded.

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Translator: Arnidhya Nur Zhafira, Yashinta Difa

Editor: Azis Kurmala

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