The state-owned electricity company revealed that coal demand for power generation from Listrik Negara and private power plants may grow from 54 million in 2012 to 67.8mt in 2014.
PTPLN coal division head Helmi Najamuddin was quoted by Bloomberg as saying that the utility has arranged coal supplies of 69.2m metric ton a year under 20-year contracts, which include purchase by independent power producers.
"We will start seeking additional supply starting in 2014 for 2015 onwards as new power plants begin operation," Najamuddin added.
The power stations have options to purchase more or less than the 20% contracted to adjust for consumption and prices are negotiated annually, Najamuddin noted.
The company controls 28,308MW of installed generating capacity in Indonesia, which is adding 10,000MW of coal-fired electricity generation to support its economic growth.