State-owned electricity company PT PLN (Persero), mining company PT Bukit Asam Tbk (PTBA), and railways company PT KAI (Persero) made a joint commitment to secure coal supply in the country in a bid to maintain electricity system reliability for the Indonesian people. 


For state electricity company PLN, long-term security of coal supply is an important factor in electricity provision and in maintaining electricity system resilience for all its customers. 

A memorandum of understanding on Strategic Cooperation of State-owned Enterprises (BUMN) to Secure The Supply Chain for Resilience of Indonesia’s Electricity System was signed between PLN Primary Energy Director Rudy Hendra Prastowo, PTBA Director of Business Development Fuad Fachrudin, and KAI Commercial Director Dadan Rudiansyah, and witnessed by PLN Vice President Director Darmawan Prasodjo, PTBA President Director Suryo Eko Hadianto, and KAI President Director Didiek Hartantyo. 

PLN Vice President Director Darmawan Prasodjo said that PT Bukit Asam and PT Kereta Api Indonesia are not newcomers in coal provision for PLN’s power plants. Cooperation in coal provision between PLN and the two state-owned enterprises has been ongoing since the 80’s. 

“Today we are shifting to the next level. Philosophically, we share the same vision, but of course we need to optimize the operational side of it,” Darmawan said at the MoU signing in Jakarta (19/08/2021). 

Regarding the characteristics of the electricity business, Darmawan pointed out that electricity is a highly regulated sector. Therefore, the cooperation will benefit the three BUMNs. 

"The spirit of the MoU is, first and foremost, fairness for all parties involved. The second is transparency in order to build trust. And lastly is the spirit of togetherness so that we may build a strong cooperation that will bring us success in the future,” he added. 

It is a well-known fact that PTBA owns a coal mine with a sizable reserve of coal with the right quality to supply PLN’s coal-fired power plants. 

Furthermore, KAI has been cooperating with PTBA to ensure reliability of coal deliveries from coal mines to the loading port. 

The cooperation between PLN, PTBA, and KAI previously focused on medium rank coal. As it is estimated that PLN’s coal needs will only increase in the future, a renewed cooperation was initiated in the hope that it would bring added value for all parties involved, including increasing security of supply and ensuring competitive pricing.

During the event, President Director PT Bukit Asam Tbk, Suryo Eko Hadianto, said he welcomed the cooperation with state electricity company PLN. He added that PTBA is committed to supporting PLN by supplying the coal that is needed in the provision of affordable electricity for the people. 

“This is the state mandate for Bukit Asam, PLN, and KAI to work towards the provision of energy that is sustainable in the long term, cost competitive, and highly reliable,” Surya Eko said. 

Suryo hoped the first step in the cooperation, which is the signing of the MoU, would soon be followed by the signing of the Head of Agreement (HoA). 

KAI President Director Didiek Hartantyo also welcomed and was highly supportive of the cooperation. 

“KAI sees this as a very important milestone in that we are building foundations for collaboration between the three companies, with PLN as a coal user, PTBA as a coal supplier, and KAI as a coal transporter,” Didiek said. 

He hoped that there will soon be a follow up to the MoU so as to create a synergy in the coal supply chain in order to improve the resilience of Indonesia’s electricity system. 

The cooperation between PT PLN, PT BA, and KAI to secure the coal supply chain is a realization of the companies’ role as state-owned enterprises in promoting the welfare of Indonesian society by ensuring security of supply and sustainable provision of electricity in the country. 

The cooperation also offers an opportunity for all parties involved to expand their business and increase their contribution, as well as strengthen the role of BUMN as the driver of the Indonesian economy.