PLN Secures Medium-Rank Coal to End Java Blackouts

PLN Secures Medium-Rank Coal to Address Java Power Shortages

PLN Secures Medium Rank Coal to End - On Saturday, June 20, 2026, PLN, Indonesia’s state-owned electricity provider, announced its efforts to secure a steady supply of medium-rank coal to resolve ongoing power outages across Java. The company’s CEO, Darmawan Prasodjo, emphasized the importance of this move during a press conference held on Friday evening, which was broadcast live on Garuda TV’s YouTube channel. The initiative aims to stabilize energy distribution and prevent further disruptions to households and businesses.

PLN has directed medium-rank coal to several thermal power plants (PLTU) in Java, including those owned by the company, its partners, and independent producers. In the western region, key facilities set to receive the coal are PLTU Pelabuhan Ratu, PLTU Lontar, PLTU Labuan, and the Suralaya units. These include PLTU Suralaya 1 through 8, as well as PLTU Jawa 7, 9, and 10, and PLTU Indramayu. Meanwhile, eastern Java’s power stations, such as PLTU Paiton units 1 and 2, PLTU Paiton 9, PLTU Rembang, PLTU Pacitan, and PLTU Tanjung Awar-awar, are also expected to benefit from the supply.

“On behalf of PLN, we apologize for the recent blackouts that have affected various parts of Java,” Darmawan said, highlighting the company’s commitment to improving service reliability. The CEO noted that the procurement of medium-rank coal is critical to addressing the shortfall and ensuring uninterrupted power supply.

PLN has accelerated its coal procurement strategy to meet the demand of these power plants. The focus is on securing coal with a medium-calorific value, which is essential for maintaining operational efficiency. Darmawan also mentioned that the company is streamlining contract negotiations with suppliers, particularly those designated by the government for medium-rank coal allocations. This effort is part of a broader initiative to bridge the supply gap and enhance grid stability.

Collaboration with the Ministry of Energy and Mineral Resources (ESDM) has been pivotal in this process. Darmawan has been in constant communication with Tri Winarno, the director general of minerals and coal, to expedite coal distribution. The partnership has enabled the company to secure critical resources and mitigate the risk of prolonged outages. “With the support of the ESDM Minister, Bahlil Lahadalia, we are confident in finalizing these agreements swiftly,” he added.

The ESDM Ministry has acknowledged the challenges in sourcing medium-rank coal, especially the 5,200 kcal per kg GAR specification required by PLN’s plants. To tackle this issue, Minister Bahlil Lahadalia formed a specialized task force dedicated to resolving the procurement bottleneck. This team is tasked with ensuring that PLN receives the necessary coal to meet its annual demand, which totals 154 million metric tons.

“Currently, PLN has secured contracts for 134 million tons of coal, leaving a gap of about 20 million tons,” Bahlil stated. He emphasized the need for coordinated efforts between government agencies and private suppliers to close this deficit and restore normalcy to the energy sector.

Bahlil also proposed revising the domestic coal pricing mechanism to support PLN’s operations. The existing cap of US$70 per ton has created financial strain for mining companies, prompting the government to consider adjustments. This change would allow producers to better manage rising operational costs while maintaining a consistent supply of medium-rank coal for power generation.

Blackouts in Java have disrupted daily life since June 8, 2026, affecting multiple provinces, including Jakarta. According to Tempo’s reports, power outages were reported in various regions, with the most recent incidents occurring in Yogyakarta, Serpong, South Tangerang, and Banten on June 19. These outages have impacted both residential and commercial sectors, underscoring the urgency of resolving the coal supply issue.

The Indonesian Coal Mining Association (APBI) has highlighted additional systemic barriers to coal availability. Gita Mahyarani, the association’s executive director, noted that government policies, such as the tightened production quotas under the 2026 Work Plan and Budget (RKAB), have limited producers’ operational flexibility. “Production adjustments through the RKAB have reduced the ability of miners to scale operations as needed,” she explained, pointing to the broader implications for domestic energy production.

PLN’s reliance on medium-rank coal is a strategic choice due to its balance between cost and efficiency. While higher-grade coal offers better performance, it is more expensive and less abundant. The company’s ability to secure medium-rank coal is a key factor in its efforts to stabilize electricity supply across Java. However, the challenge lies in ensuring that the supply chain remains resilient amid fluctuating market conditions and regulatory constraints.

The government’s approach to coal procurement has also been scrutinized. Critics argue that the 2026 RKAB policy, which reduces production quotas, has exacerbated the supply crisis. This policy aims to conserve resources but may have unintended consequences on energy security. APBI’s Gita Mahyarani stressed the need for a more flexible framework to allow producers to adapt to changing demands without compromising their profitability.

As PLN moves forward with its procurement plan, the focus remains on delivering a reliable power supply. The company’s coordination with ESDM has proven effective in securing critical coal reserves, but long-term solutions will require addressing the structural issues within the mining and energy sectors. The successful implementation of this strategy could serve as a model for future resource management, ensuring that Java’s energy needs are met without compromising environmental or economic goals.

Read: What Caused PLN's Rolling Power Outages Across Java

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