Indonesia's Power Sector Projects 174 Million Tonnes of Coal Demand in 2027
Wed 04 Nov 2026, 14:28 PM
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PT PLN Energi Primer Indonesia (PLN EPI) has projected that coal-fired power plants (PLTU) operated by PLN Group and independent power producers (IPPs) will require approximately 173.83 million tonnes of coal in 2027.
PLN EPI Acting President Director Rakhmad Dewanto explained that PLN Group's power plants are expected to require approximately 83.84 million tonnes of coal, while privately operated power plants will need around 75.99 tonnes.
"Next year, our coal demand is estimated at around 174 million tonnes, comprising approximately 89 million tonnes of medium-rank coal and 76 million tonnes of low-rank coal," Rakhmad said during the Minerba Convention & Exhibition (Convex) 2026 on Tuesday (November 3, 2026).
In detail, PLN Group's coal-fired power plants are projected to require 51.6 million tonnes of medium-rank coal (MRC), 37.72 tonnes of low-rank coal (LRC), and approximately 8.51 million tonnes of high-rank coal (HRC).
Meanwhile, IPP-operated power plants are expected to require 37.54 million tonnes of medium-rank coal and 38.45 million tonnes of low-rank coal.
"Based on the design of our power plants, approximately 50% to 60% of coal demand is for medium-rank coal," Rakhmad explained.
Rakhmad further revealed that Indonesia holds approximately 4.54 billion tonnes of medium-rank coal reserves and 3.4 billion tonnes of high-rank coal reserves, with the remaining reserves predominantly consisting of low-rank coal.
He noted that this presents a challenge in meeting coal supply requirements for power generation, as Indonesia's low-rank coal reserves are significantly larger than its medium-rank coal reserves, despite power plants requiring a substantial proportion of medium-rank coal.
"To address this, we are working to adjust and upgrade our power plants. For example, we are trying to lower the calorific value requirements of plants that previously required higher-calorie coal," he said.
Previously, the Ministry of Energy and Mineral Resources (ESDM) reported that PLN's total coal requirements ranged between 152 million and 154 million tonnes annually.
Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Tri Winarno, stated that the government had assigned mining companies to supply coal to PLN's coal-fired power plants to meet domestic demand.
According to Tri, the assignments were intended to ensure adequate and sustainable coal supplies for PLN's power generation operations.
"To meet PLN's requirement of 154 million metric tonnes, we have assigned mining companies a total supply volume of 212 million metric tonnes," Tri said in an official statement cited on Sunday (July 12, 2026).
The Directorate General of Mineral and Coal continues to coordinate with PLN EPI and mining companies to ensure coal deliveries to power plants are made on schedule, in the required volumes, and in accordance with technical specifications.
"The government continues to ensure that PLN's coal requirements for the second half of 2026 are fulfilled according to schedule and power plant specifications. Therefore, coordination and the acceleration of contract finalization must continue," Tri emphasized.
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