Govt diverts export coal to meet PLN demand

By Calvin Purba

Indonesia has diverted some medium-calorific-value coal originally intended for export to domestic power plants after shortages disrupted supplies to state utility PT Perusahaan Listrik Negara (PLN), Energy and Mineral Resources Minister Bahlil Lahadalia said.

The government stepped in after shortages of medium-grade coal contributed to rolling blackouts across parts of Java earlier this month.

Bahlil said the Energy and Mineral Resources Ministry had redirected coal shipments from export markets to ensure domestic demand was met, blaming weak coal procurement management at PLN for the supply shortfall.

"Following the President's directive, we do not want this situation to happen again. Things are running normally now. Some coal that was supposed to be exported has been held back so that domestic needs can be prioritized first," Bahlil said at the Energy Forum on Thursday.

Bahlil said PLN still faced a shortfall of about 13 million metric tons against its total coal requirement of 154 million tons this year, but questioned why such a relatively small gap had led to supply problems.

"Out of 154 million tons, 141 million tons have already been secured, which means only 13 million tons are lacking. How could coal stocks run out as early as June?" he said.

The coal shortages were among the factors behind rolling blackouts that affected parts of Java last week, alongside disruptions at several power plants and maintenance issues in the electricity system, according to the government.

PLN President Director Darmawan Prasodjo said the utility had since secured additional supplies of medium-grade coal for coal-fired power plants across Java.

Shipments meeting the required coal specifications had begun arriving at generating units, while PLN had accelerated contract signings with government-designated coal suppliers, particularly those supplying medium-grade coal, Darmawan said.

The power plants affected by shortages of medium-grade coal included Pelabuhan Ratu, Lontar, Labuan, Suralaya Units 1-8, Jawa 7, Jawa 9 and 10, Indramayu, Paiton Units 1 and 2, Paiton 9, Rembang, Pacitan and Tanjung Awar-Awar.

Editing by Reiner Simanjuntak