Indonesia Restores 5 GW on Java-Bali Grid With 1.8 Million Tons of Emergency Coal
Updated
Updated · Asia Times · Jul 3
Indonesia Restores 5 GW on Java-Bali Grid With 1.8 Million Tons of Emergency Coal
1 articles · Updated · Asia Times · Jul 3
Summary
A 1.8 million-ton emergency coal shipment in July, followed by 3 million tons a month from August to December, restored about 5 gigawatts of reserve capacity and ended Java-Bali rolling blackouts.
PLN still faces a 2026 coal supply gap of roughly 18 million to 20 million tons, with binding contracts for only about 134 million tons against projected demand of 154 million tons.
The shortfall reflects delayed mining quota approvals and a pricing mismatch: domestic coal for power plants is capped at $70 a ton, while Indonesia’s benchmark price reached $121.83 in June, pushing miners toward exports.
The crisis also exposed a quality mismatch, as output has shifted toward low-calorific coal while many PLN plants require 4,500 to 5,200 kilocalories per kilogram.
Indonesia is rolling out a centralized export system through PT DSI, but with up to $1.8 billion in contracts affected and no compensation scheme for domestic sales, analysts say deeper reforms are still needed to avoid repeat shortages.