Indonesia Plans New Agency for Coal and Gas Supplies Amid Industry Uncertainty

The Indonesian government is drafting a presidential regulation to establish a public service agency in the energy sector called BLU Energi. This new entity will be responsible for supplying coal and natural gas to power plants to ensure electricity supply in the public interest.

BLU Energi will operate under the Ministry of Energy and Mineral Resources (ESDM) and have various functions, including consolidating power plant demand, formulating procurement plans, procuring and distributing coal and natural gas, managing supply, and ensuring supply continuity.

The proposed framework grants BLU Energi a direct role in coal procurement and supply management. The existing Domestic Market Obligation (DMO) mechanism already requires coal producers to bear domestic supply obligations based on approved RKABs and government allocations.