The reference price of coal to PLN remains in force

KONTAN.CO.ID – JAKARTA. The government finally overturned the policy of domestic coal supply or Internal Market Obligation (DMO). As a result, in addition to the offer is guaranteed, the reference price of DMO coal of US $ 70 per tonne for PT Perusahaan Listrik Negara (PLN) also remains valid.

With the cancellation of the revised DMO coal price reference, this may help PLN's financial situation. This also guarantees the supply of coal to PLN is guaranteed. As a result, the provision of electricity to customers is not disrupted.

The head of PLN's company communication unit, I Made Suprateka, admits that PLN feels overwhelmed by the review of DMO's coal policy. According to him, PLN President Sofyan Basir has conveyed to President Joko Widodo a message that the revocation of the DMO coal policy and the reference coal price of US $ 70 per tonne could add to the burden of the PLN.

Up to now, the obligation to provide coal for local needs or 25% of BMD has not been fully realized. This year, the government is targeting domestic demand for coal for PLN PLN to reach 92 million tonnes. "If the policy is revoked, no one supplies it, then the power goes out," Suprateka told KONTAN on Tuesday (31/7).

In addition, if the national reference price is also revoked, losses incurred by PLN will increase. If the reference price of US $ 70 per tonne is revoked, Mr. Suprateka said the burden on PLN would be about US $ 3.8 billion.

Previously, the government hopes to revoke the reference price of DMO coal, will receive currencies of 2 to 3 US dollars per ton.

Assuming a charge of US $ 3 per tonne, the government will receive about US $ 1.3 billion. "It's a waste, even the government will add subsidies to the rest of the charge," Suprateka said.

Executive Director of the Indonesian Coal Industry Association (APBI), Hendra Sinadia says that businessmen support any government policy. More importantly, contractors next year are certain of production and export activities.

As is known, thanks to a 25% BMD policy, many coal companies are losing money because they have to transfer quotas because the coal specification required by PLN n & # 39; 39; is not consistent with the production of the company.

"The buyer goes to the other party using the reference price but he is sold to PLN using the reference price, but he's not put in it will be sanctioned and we will ask for certainties ". 7).

Effective June 8, 2018, ESDM Minister Ignatius Jonan will impose penalties on coal companies that do not meet their 25% obligations. If until the end of July the execution of the BMD is not carried out, the coal company will be subject to the sanction of the 2018 production cuts that have been approved in the plan of Work and Cost Budget (RKAB).

Fahmy Radhi, economist and energy observer at Gadjah Mada University, said that the desire to revoke the BMD and the reference price is the support of the coordinating minister of the Ministry of Marine, Luhut Binsar Panjaitan. "The previous meeting invited the contractors, not the affected PLNs," he told KONTAN.

Fahmy also said that the reason why coordinating minister Luhut Panjaitan believes that the revision of the WCO coal policy will benefit PLN is a ridiculous thing.

MINE AND ENERGY