Jakarta. State utility PLN is accelerating coal procurement and seeking additional medium-grade coal supplies after fuel shortages triggered rolling blackouts across Java, underscoring vulnerabilities in Indonesia's electricity supply chain despite the country's status as one of the world's largest coal producers.

PLN President Director Darmawan Prasodjo said the company is speeding up contract signings with coal suppliers that have received government assignments, particularly for medium-rank coal used by many coal-fired power plants.

"We are accelerating contract agreements with coal suppliers, especially medium-rank coal producers that have received government allocations," Darmawan said on Saturday.

The utility has intensified coordination with the Energy and Mineral Resources Ministry to expedite coal deliveries and ensure stable fuel supplies for power generation.

Energy Minister Bahlil Lahadalia has instructed PLN to improve procurement processes after coal supply disruptions led to rolling power outages on Java, the country's most populous island and economic center.

Darmawan apologized to the public for the electricity disruptions.

"On behalf of PLN, we sincerely apologize because Java experienced rolling blackouts. We understand the difficulties faced by the public as a result of this incident," he said.

Read More: Indonesia Faces Medium-Calorie Coal Supply Shortage for Power Plants, Minister Says

Businesses Hit by Power Cuts
The outages have begun to affect businesses and local economies. In Karawang, an industrial district in West Java, rolling blackouts lasting between three and five hours have occurred as many as three times a week, disrupting commercial activities and public services.

Owners of cafes, coffee shops and ornamental fish businesses reported revenue declines of between 30% and 50% as operations were interrupted by power cuts.

A manager of a local cafe said the business had been forced to reduce its menu because espresso machines, coffee grinders, air conditioners and other equipment could not operate during outages, resulting in lower customer traffic.

Fish breeders and aquarium businesses also reported rising costs as they relied on diesel generators to keep water circulation and oxygen systems running to prevent fish deaths.

Local government offices have also been affected. In one village in Karawang, officials were forced to rent generators to continue public events after electricity supplies were interrupted.

Read More: Indonesia to Lift Coal Production Quota to Over 600 Million Tons

Supply Gap Emerges
The government has established a special task force to secure supplies of medium-rank coal, particularly coal with a calorific value of around 5,200 kcal per kilogram GAR, which is widely used by PLN's coal-fired power plants.

According to Bahlil, PLN requires about 154 million metric tons of coal annually. The utility has secured contracts for approximately 134 million tons, leaving a supply gap of around 20 million tons.

The coal shortages have highlighted a mismatch between Indonesia's abundant coal production and the specific fuel quality required by domestic power plants. Medium-rank coal has become increasingly difficult to secure as producers seek higher returns from exports.

Coal deliveries have begun reaching power plants across Java, including major facilities in western Java such as Suralaya, Pelabuhan Ratu, Lontar, Labuan, Jawa 7, Jawa 9 and 10, and Indramayu. In eastern Java, supplies are being directed to the Paiton complex, Rembang, Pacitan, and Tanjung Awar-awar plants.

The government is also considering adjustments to coal prices supplied to PLN under Indonesia's domestic market obligation, or DMO, policy.

Coal sold to PLN under the DMO scheme is currently capped at $70 per metric ton, well below international prices. Global thermal coal prices are currently around $144 per ton, while Indonesia's June benchmark coal price stands at $122 per ton.

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