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Indonesia orders miners to provide more coal amid blackouts

Indonesia orders miners to provide more coal amid blackouts

Mining.comMining.com2026/06/23 14:36
By:Mining.com

Indonesia’s energy ministry directed miners to urgently boost domestic coal supplies just before the country was hit by rolling blackouts, the latest strain on President Prabowo Subianto’s administration following a week of protests.

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The Energy and Mineral Resources Ministry told miners to supply an additional 2.7 million tons of coal to power plants this month, according to a letter dated June 12 seen by Bloomberg News. It cited a ministerial decree allowing the government to force producers to prioritize domestic sales if local needs are not met.

The extra demand amounts to about 2% of the total coal contracted so far this year by state power firm Perusahaan Listrik Negara.

The Energy Ministry didn’t immediately respond to a request for comment.

Rolling blackouts last week across Java — Indonesia’s most populous island — are the latest setback for Prabowo, whose administration has been rocked by protests, corruption scandals and the economic fallout from the US-Iran war. The former general has unnerved investors with his fiscal expansion and policy making, leading to a sharp decline in the local currency.

Indonesia, the world’s top exporter of thermal coal, sharply cut its production this year by tightening government-issued mining quotas in an effort to boost prices. Power blackouts have triggered scrutiny over that policy.

Energy Minister Bahlil Lahadalia, though, said in a Sunday statement that the power outages were caused by technical issues rather than a shortage of coal. Darmawan Prasodjo, president of PLN, said the power disruptions were caused by problems at two large power plants on Java.

Indonesian miners are required to sell a proportion of their coal to domestic consumers, including power plants, each year, usually at below-market prices. Their obligations are often set at the start of the year.

(By Eddie Spence)

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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