Special Coal Price for PLN Still Needed

By Editorial Team 30/08/2019
Summary

State electricity provider PT Perusahaan Listrik Negara (PLN) hopes the government to continue the policy requiring coal miners to allocate supply for the domestic market. The domestic market obligation (DMO) is determined through the Ministry of Energy and Mineral Resources Decree No. 1395 K/30/MEM/2018 on the Minimum Coal Sales Percentage for Domestic Interest in 2019. Local coal miners are required to allocate 25 percent of their production for domestic markets.

In its implementation, the government then issued the decree. It regulates coal selling price for domestic power plants, which is set at US$ 70 per ton for coals with reference calorie of 6,322 kcal/kg GAR or using a reference coal price (HBA). If the HBA is below the value, it will be used as a reference. The special price implementation has a time limit until the end of 2019.

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