Revocation of the regulations on the MDGs canceled | Jakarta newspaper



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Coal Products I Government PLN Estimates Expense Expenditures Up $ 3.68 Billion If DMO Removed

Given PLN's burdensome potential, the government finally abandoned the intention to revoke the Domestic Supply Obligations Policy (DMO). 19659003]

Jakarta – The government finally abandoned plans to lift the regulation of special coal prices for domestic or domestic market (DMO) bonds. The government estimated that the cancellation took into account the burden of the State Electricity Company (PLN) which could swell due to the revocation of the policy.

The cancellation was decided by President Joko Widodo (Jokowi) in Istana, Bogor Tuesday (31/7). With the cancellation, the current regulation is still the old regulation, namely the Decree of the Minister of Energy and Mineral Resources (Kepmen ESDM), relating to the allocation of coal to 25% BMD.

Ignatius Jonan, Minister of Energy and Mineral Resources decided that. Thus, the applicable regulations are always the old rules. When asked about companies that implemented the old policy, Jonan said that it should be the domain of the commercial players.

Mentioned Jonan, the government is only one policy, which manages the players in the business world. The obliging government. "The 25% DMO settlement is still ongoing," Jonan said in Jakarta on Tuesday.

According to the coordinating minister of the economy, Darmin Nasution, Jokowi reason not to bless the removal of the DMO policy one of them because of the financial burden of PT PLN. Because, if the DMO is revoked, PLN will have a hard time sourcing and buying coal at market prices.

Darmin adds that the cost of PLN is expected to increase by $ 3.68 billion if the DMO policy is removed. "If the BMD is not applied, the implications will still be different, including because of PLN's finances," he said.

Policy Evaluation

However, the cancellation of BMD is only temporary following a statement from the government that still wants to evaluate the policy. According to the report, the plan to revoke the BMD should be done next year

Darmin said the implementation of the DMO policy will be evaluated by the Minister of Coordination of the Ministry of Marine, Luhut Binsar Panjaitan. "I'd better say, be evaluated." Previously, the government plans to abolish the sourcing obligations of coal companies for domestic needs by 25 percent of total production, while the rest may For DMO, the selling price of coal is set at US $ 70 for 6,332 calories, while for the export market it is subject to the world market mechanism.

The Government argues that the plan is strongly supported by the coal mining sector

.However, the plan is currently collecting national countermeasures.Tulus Abadi, the president of the Indonesian Foundation of Consumers (YLKI), confirmed that the revocation of the DMO policy would increase PLN's weight.To overcome this, PLN will certainly find ways to reduce its burden, including by increasing the e base rate of electricity (TDL). "PLN must save its financial situation, so he has to raise the tariff," he told Jakarta on Tuesday (31/7).

A similar thing was also delivered by Energy Observer, Marwan Batubara. According to him, the revocation could disrupt the finances of PLN.

ers / Ant / E-10

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