Prabowo readies energy BLU to buy coal and gas for PLN
Draft presidential regulation would give the BLU authority to buy supplies, deliver them to plants and hedge prices.
President Prabowo Subianto’s government is preparing an Energy Sector Public Service Agency to buy and distribute coal and natural gas for power plants. A draft presidential regulation in circulation assigns the BLU to plan demand, procure supply and distribute it so electricity for households and industry remains secure. The BLU can also buy coal from IUP and IUPK holders, take gas from domestic allocations set by the Minister of Energy and Mineral Resources, and even manage mines through affiliates. The scheme also requires an integrated digital system and opens the option of hedging to cushion price swings. But Indonesian Mining and Energy Forum chairman Singgih Widagdo called for clearer institutional design and role sharing, saying 799 coal mining business permits vary widely in capacity, location and quality.