By: Gavin Asadit )*
Energy security continues to be a strategic agenda of President Prabowo Subianto’s administration, aimed at maintaining national economic stability and supporting sustainable development. Amidst increasing national electricity demand, the government believes that strengthening primary energy governance is inseparable from the overall energy sector reform agenda. A key focus in mid-2026 will be coal procurement for PT PLN (Persero), given that coal remains the primary source of national electricity generation.
The government believes that the reliability of electricity supply is determined not only by generating capacity but also by the quality of primary energy procurement governance, which is efficient, transparent, and able to meet system needs sustainably. Therefore, improvement measures are beginning to be directed not only at ensuring supply availability but also at strengthening oversight mechanisms to ensure a more accountable process.
Minister of Energy and Mineral Resources Bahlil Lahadalia explained that the government has decided to take more structured steps by establishing a special procurement team to oversee PLN’s coal needs. The team involves representatives from PT PLN, the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources, the Inspectorate General, and the Financial and Development Supervisory Agency (BPKP).
This step follows the President’s directive to strengthen primary energy oversight and prevent recurring procurement issues. The government believes a collaborative, cross-agency approach is necessary because the complexity of the national energy supply chain cannot be addressed sectorally. This mechanism is expected to provide more comprehensive oversight, from demand planning and supply fulfillment to distribution to power plants.
In its explanation, the government noted that PLN’s coal needs reach approximately 154 million metric tons annually. To maintain adequate supply, the government has assigned Domestic Market Obligation (DMO) assignments to coal companies, totaling approximately 190 million tons. While the aggregate allocation is deemed sufficient, challenges arise in ensuring specifications are met and distribution effectiveness must meet power plant operational needs in a timely manner.
The government believes that strengthening governance is crucial to ensure that PLN can effectively access the available supply volumes, tailored to the specific needs of generating plants in the field. This approach also enhances procurement efficiency and reduces potential additional costs that could impact the operation of the national electricity sector.
On the corporate side, strengthening primary energy procurement governance also aligns with the government’s ongoing transformation of state-owned enterprises. Dony Oskaria, Head of BP BUMN and Chief Operating Officer of Danantara Indonesia, previously emphasized that the transformation of SOEs is aimed at creating a healthier, more efficient corporate structure focused on long-term value creation. In the context of PLN, strengthening energy procurement governance is seen as aligned with the agenda of streamlining business processes and reducing inefficiencies that have hampered decision-making speed.
The government wants to ensure that state-owned enterprises are not only strong in terms of assets and investments, but also have operational systems capable of responding quickly and measurably to national needs. This transformation approach is part of a broader strategy to strengthen the competitiveness of SOEs amidst the changing global economic and energy landscape.
Meanwhile, PLN continues to strengthen its operational transformation efforts to maintain sustainable electricity system resilience. PLN President Director Darmawan Prasodjo has prioritized strengthening power plant reliability and efficient primary energy management as part of the company’s transformation agenda. According to PLN, ongoing power plant and network development must be supported by a stronger and more integrated fuel procurement system.
Therefore, improving coal procurement is seen not merely as a response to short-term needs, but as part of an effort to maintain the continuity of national electricity services. The government believes that successfully maintaining primary energy supplies will have a direct impact on the quality of public services, the stability of electricity tariffs, and the certainty of national investment.
In addition to ensuring supply availability, the government has also begun strengthening its oversight and accountability systems in the procurement process. Integrating energy demand data, evaluating distribution patterns, and improving internal controls are part of the agenda, which will continue to be pushed throughout 2026. The government wants to ensure that every procurement decision is based on the system’s actual needs and good governance principles. This approach is also considered crucial for maintaining the efficient use of state resources and mitigating potential risks that could disrupt the sustainability of public services in the energy sector.
Amid the ongoing energy transition, the government continues to view coal as having a vital role in maintaining the stability of the national electricity supply. However, this role must be accompanied by governance improvements to ensure more efficient and responsible use of primary energy. President Prabowo’s administration has positioned strengthening PLN’s coal procurement as part of a broader strategy: building a resilient, adaptive national energy system capable of supporting long-term economic growth.
)* The author is an observer of social and community issues