[SMM Coal Flash] Indonesia’s 2027 Power Sector Coal Demand Projected at 173.83 Million Tonnes

India aims to nearly triple coal inventories at power plants from around 18 million tonnes to at least 55 million tonnes by March 2027, ahead of next summer’s peak electricity demand. The target was jointly set by the coal, power and railways ministries to reduce the risk of power shortages. Current coal stocks cover around six days of consumption, below the government’s target of three weeks. Coal India and Indian Railways are increasing coal production, dispatches and rail capacity to replenish inventories, while priority supplies to power plants have left industrial users, including captive power plants, facing tighter coal availability.

PT Semen Indonesia (SIG) lost around 1.7 million tonnes of potential cement production in 2026 after delayed or unavailable coal deliveries forced kilns at several plants to suspend operations more than ten times. Indonesia’s cement industry requires around 15 million tonnes of coal annually. SIG said coal supply remains difficult to secure as miners prioritise deliveries to PLN and export markets.

Indonesia’s state-owned coal miner PT Bukit Asam (PTBA) is preparing to reactivate the Ombilin coal mine in Sawahlunto, West Sumatra, which ceased operations in 2015. Recent exploration identified an additional 1.82 million tonnes of coal reserves, with an average calorific value above 6,500 kcal/kg and reaching 7,000 kcal/kg. PTBA targets annual production of 300,000-500,000 tonnes, with the additional reserves expected to support operations for four to five years. Open-pit mining at Langkok Block is expected to begin in Q4 2026, while initial mining activities are targeted for early 2027. The company has also identified around 100 million tonnes of potential coal deposits beneath the urban area, although development remains challenging.