According to Handbook of Energy and Economic Statistics of Indonesia 2016, Indonesia has around 126 billion tons of total coal resources and around 32 billion tons of total coal reserves that widely located in Kalimantan and Suma/era Island. PT. PLN (Persero) as the state-01Vned power producer in Indonesia conducted a plan to enhance electricity production for the next ten years by having General Plan of Electricity Supply (Rencana Usaha Penyediaan Tenaga listrik I RUPTL). Pratama (2016), in his research, determine 1he suitable location of coal blending facility located around Tarahan anchorage for Sumatera Island. The existence of this coal blending facility is projected would improve the continuity of coal distribution to coal-fired power plants in northern side of Java Island. Hence, there are two options of coal distribution for those coal-fired power plants from the coal producer. The first one is direct supply from coal mining companies to power plants (scenario I) and the second one is indirect supply from coal mining companies through coal blending facility (scenario 2). In this research, 1he existence of coal blending facility will be analyze lo minimize the coal procurement cost. From the result of optimization it is concluded that scenario 2 gives higher coal procurement cost than the scenario I. It means 1hat scenario I gives less procurement cost than scenario 2. From the sensitivity analysis, can be concluded that scenario 2 will give less coal procurement cost than scenario I if the coal blending cos/ is decreased to maximum of US$ 0.25/ton and will give the least coal procurement cost if the calorific value specification for the coal-fired power plants is 4,000kcal/kg in gross as received (gar) basis.