PLN's coal consumption will rise to 65 million tonnes next year, from 50 million tonnes in 2010, Nur Pamudji, PLN's primary energy director, told reporters on Thursday.
"Several new power plants will be on stream this year and their coal consumption will reach full capacity by next year," said Pamudji.
Indonesia's domestic coal demand is steadily growing, though PLN's extra needs will not affect exports from the world's top thermal coal exporter, which expects shipments of 260-270 million tonnes of coal this year.
PLN will start operating new power plants with a total generating capacity of 3,375 megawatts (MW) in 2011.Pamudji added that PLN expected to generate 5,000 MW of additional power this year.
Indonesia wants to boost its electricity capacity under a government programme to add a total of 20,000 megawatts generating capacity. The government is seeking private investors to fund two-thirds of its infrastructure needs.
Power shortages are common in Indonesia, where poor infrastructure is one of the factors restricting growth in Southeast Asia's largest economy.
In January, PLN short listed seven foreign investors for a $3 billion coal-fired power plant in Central Java, an official said.
Earlier this week, three firms dropped bids to develop the 2,000 megawatt coal-fired power plant.