Millions of residents across Java and Bali experienced rolling blackouts beginning June 9–10, 2026. The government's first response was to blame technical failures at power plants not coal supply. But three days later, the story changed.
On June 15, 2026, Energy Minister Bahlil Lahadalia admitted before Parliament's Commission XII that PLN was genuinely struggling to secure medium-calorie coal supplies. The reason: an unsustainable price gap.
The numbers tell the story: Under the Domestic Market Obligation (DMO) policy, coal producers must sell to PLN at a fixed price of US$70/ton. But the benchmark coal price (HBA, June 2026 Period I) for medium-calorie coal (5,200 kcal/kg) has reached US$84.53/ton a gap of over US$14/ton. With margins effectively wiped out, producers have been redirecting medium-calorie coal toward exports and non-PLN buyers.
The result: of the 190 million tons assigned through DMO, only 134 million tons are under contract. A shortfall of around 20 million tons remains unresolved.
The Ministry of Energy has since formed an emergency procurement team involving PLN, the Directorate General of Minerals and Coal, and the government's financial oversight agency (BPKP). Minister Bahlil has pledged no further blackouts, while also acknowledging that Indonesia's domestic coal quality is declining naturally as high-calorie reserves thin out.
The June blackouts were not just a power outage. They were a warning sign that Indonesia's coal pricing policy needs urgent reform before the next crisis hits harder.
