Indonesia Projects Coal Demand for PLN and IPPs to Rise to 173 Million Tons in 2027, With Java Absorbing 122 Million MT

JAKARTA, Investortrust.id — Coal demand for coal-fired power plants (PLTU) operated by state utility PT Perusahaan Listrik Negara (PLN) and independent power producers (IPPs) is projected to climb to 173 million metric tons (MT) in 2027, up from an estimated 152 million MT this year as new generating units connect to the national power grid.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung stated on Friday that the government is preparing supply allocations from domestic coal miners to anticipate the higher consumption, aiming to finalize producer supply assignments before the end of 2026.

"While coal demand for PLN and IPPs in 2026 is around 152 million MT, we will increase this because additional coal-fired power plants are entering the system. So in 2027, coal demand for PLN and IPPs will be around 173 million MT," Yuliot told reporters at the Ministry of Energy and Mineral Resources Secretariat in Jakarta on Friday, Nov. 13, 2026.

Java Grid Drives Power-Sector Demand

The projected 21 million MT increase in coal requirements is primarily driven by several coal-fired power plant units across Java that have completed commissioning trials and are ready to synchronize with the grid. Yuliot clarified that these additions reflect scheduled rollouts already stipulated in the previous Electricity Supply Business Plan (RUPTL), rather than a newly revised procurement roadmap.

Power plants in Java alone are expected to consume roughly 122 million MT of coal in 2027, representing more than 70% of total projected national coal demand for PLN and IPPs.

"The additional coal-fired power plants include several new units in Java. So total coal demand for Java is around 122 million MT," Yuliot said.

Securing Year-End Supplier Assignments

To prevent supply bottlenecks as grid capacity expands, the Energy Ministry is moving to lock in mandatory supply commitments from individual coal producers ahead of the new year. The assignments form part of the government's broader effort to safeguard primary energy security for domestic electricity generation.

"So, we hope that before the end of the year, there will already be formal assignments for each coal producer supplying PLN," he added.