Jakarta. Indonesia is facing a limited supply of medium-calorie coal needed to fuel some state-owned utility PLN's power plants, Energy and Mineral Resources Minister Bahlil Lahadalia said on Thursday, as authorities seek solutions to maintain adequate fuel stocks for electricity generation.

Bahlil acknowledged that shortages of 5,200-kcal coal have emerged as a concern in efforts to maintain PLN's power plant operating days (HOP), an indicator measuring the adequacy of fuel reserves to keep power stations running.

The issue comes amid public complaints over power outages reported across parts of Greater Jakarta over the past two weeks. Similar disruptions have also been reported in Cianjur, Semarang, Madura, and several areas in Sumatra, prompting speculation about potential constraints in fuel supplies for power generation.

Speaking in Jakarta, Bahlil said PLN's coal requirement for 2026 is projected at 154 million tons. The utility has secured contracts for around 134 million tons, leaving a shortfall of between 18 million and 20 million tons that still needs to be filled.

According to the minister, the main challenge lies in securing medium-calorie coal, particularly the 5,200-kcal grade, which remains necessary for certain power plants. Supply has become increasingly difficult as the calorific value of Indonesia's coal reserves continues to decline.

Bahlil said the government is working to address the issue, adding that overall fuel supplies for power generation remain stable aside from the medium-calorie segment.

The minister attributed the supply constraints partly to rising production costs. He said that the stripping ratio — the volume of overburden that must be removed to access coal deposits — has increased to between 8 and 12, significantly raising production expenses for miners.

As a result, the government is reviewing pricing mechanisms to strike a balance between ensuring affordable coal supplies for PLN and maintaining the economic viability of coal producers.

"We must ensure that PLN is not disadvantaged while coal producers are also not forced to sell at a loss," Bahlil said.

The government is currently assessing various policy options, including industry concerns over rising production costs, as it seeks to secure sufficient coal supplies for the country's power sector while protecting both electricity consumers and mining companies.

Add as a preferred source on Google +