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Indonesia’s energy minister says government working to secure coal supply for state utility

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JAKARTA, June 18 : Indonesia’s Energy and Mineral Resources Minister said on Thursday that the government is working to ensure that coal supplies to state power utility Perusahaan Listrik Negara (PLN) remain stable after reports of blackouts.

Here are some details:

• Energy minister Bahlil Lahadalia told reporters there were problems regarding the supply of medium-grade coal to PLN and the government will form a team to oversee coal procurement for PLN.

• Bahlil said production costs for medium-grade coal are rising and the government is working on finding a solution to bridge the price gap.

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• Indonesia, the world’s largest thermal coal exporter, imposes a so-called domestic market obligation (DMO) for coal producers where miners are required to sell at least 25 per cent of their output domestically. The price for power generation is capped at $70 per ton.

• The majority of Indonesia’s power is supplied by coal-fired plants.

• PLN is expected to require 154 million metric tons of coal to generate power in 2026 and has secured contracts for 134 million metric tons, Bahlil said.

• The Java and Bali regions have experienced increasingly frequent blackouts, local media reported. PLN has said the power outages were due to maintenance activities in some areas.

Source: Reuters

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