TEMPO.CO, Jakarta - State-owned electricity company PLN revealed that the rolling power outages hitting several regions across Java were triggered by technical disruptions at two major power plants that are currently unable to operate.
PLN's Executive Vice President of Corporate Communications and CSR Programs, Gregorius Adi Trianto, stated that the outage has caused a sharp decline in the power supply capacity of the Java grid, forcing the utility company to implement temporary load shedding to balance supply and electricity demand.
"This step was taken due to technical operational constraints at the power plants and disruptions at two large power plant units, which are currently non-operational, thereby reducing our total power supply capability," Gregorius said in a written statement on Friday, June 19, 2026.
According to him, PLN is currently accelerating the recovery process by optimizing electricity supply from alternative power plants and adjusting grid operations to minimize the impact on consumers.
"PLN apologizes for the inconvenience caused to our customers. This load management is temporary and will be stopped gradually as the supply system conditions improve," Gregorius added.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia previously stated that the rolling blackouts occurred because several coal-fired power plants were hit by a severe supply shortage of medium-calorific coal.
During a working meeting with the House of Representatives' Commission XII on June 15, 2026, Bahlil explained that this restricted coal supply has left multiple power plants unable to operate at optimal generation capacity.
Bahlil claimed that the root issue lies in a significant price disparity between the coal earmarked for domestic needs—the Domestic Market Obligation (DMO)—and prevailing market rates.
Currently, coal destined for PLN is capped at a DMO price of US$70 per ton, whereas the Reference Coal Price (HBA) for the first period of June 2026 reached US$121.83 per ton for high-calorie coal (6,322 kcal/kg) and US$84.53 per ton for medium-calorific coal (5,300 kcal/kg).
"So, the selling price to PLN is no longer financially viable for the company. That is the problem," Bahlil pointed out.
Chairperson of the Indonesian Mining Experts Association (Perhapi), Sudirman Widhy, assessed that most mining companies holding medium-calorific coal reserves have actually met their 25-to-30 percent DMO quota of total production as mandated by the government.
However, he noted that many producers are reluctant to supply volumes beyond their basic legal requirements to PLN because the capped DMO price no longer reflects current production costs. The price ceiling has remained frozen since it was first instituted in 2018, even as actual mining operational costs have climbed steadily over recent years.
Sudirman explained that a combination of rising stripping ratios, soaring fuel costs, and more expensive spare parts has driven up the mining production costs. This reality has prompted several mining firms to prioritize selling their coal to non-PLN domestic buyers or export markets offering more competitive prices.
"Perhapi urges the government to reevaluate the benchmark DMO coal price for PLN. Price adjustments are necessary to ensure that mining companies retain the economic incentives needed to supply national power plants without being forced to incur losses," he concluded.
Read: Bahlil Assures No Planned Blackouts Amid PLN Coal Supply Concerns
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