Daily Business Briefs – Nov 17

JAKARTA (TheInsiderStories) – Good morning. We offer you several relevant news that might help your business decisions today:

PLN To Simplify Electricity Tariff Classification

The state owned electricity company PT Perusahaan Listrik Negara (PLN) plans to simplify electricity tariff classification. Under the plan, all consumers under tariff class of between 1,300-3,300 KW would be migrated to 5,000 KW class tariff. Currently, there are 13 million of consumers in this tariff class. President Director of PLN Sofyan Basyir said the change of tariff scheme will not result in changing of price. Separately, Directorate General for Electricity Andri Someng said the changing of tariff scheme will make it easier for the public to get electricity.

Rupiah Depreciates in October, Due to External Factors.

The rupiah depreciated by an average of 1.63 per cent to Rp13,528 per USD in October 2017. The depreciation was in line with prevailing trends for most other global currencies against the US dollar. The US dollar appreciated globally as an impact of the financial market’s response to the nomination of The Federal Reserve Governor as well as its monetary policy stance normalisation, growing expectations of a further FFR hike and US plans for tax reform. Nevertheless, Bank Indonesia continues to stabilise the rupiah in line with its fundamental value, while maintaining market mechanisms.

MHPC Starts Construction of Cirebon Power Plant

Mitsubishi Hitachi Power System has started the construction work for the $2 billion Cirebon expansion project to add a new 1GW coal-fired power plant in West Java Province, Indonesia. The project will see the expansion of the 660MW coal-fired Cirebon power station, located in Cirebon district, about 250km east of Jakarta. The power plant is currently operated by Marubeni. MHPS will construct the large-scale ultra-supercritical-pressure coal power plant on a full-turnkey basis in partnership with Toshiba Group and Hyundai Engineering & Construction

November HBA Thermal Coal Price Up 12% on Year to $94.80/mt

Indonesia’s Ministry of Energy and Mineral Resources set its November thermal coal reference price, also known as Harga Batubara Acuan or HBA, at $94.80 per metric ton (mt), rising 12 per cent year on year and up about 0.9 per cent from October at $93.99 per metric ton. The HBA is a monthly average price based 25% each on Platts Kalimantan 5,900 kcal/kg GAR assessment, Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR); Newcastle Export Index (6,322 kcal/kg GAR) and globalCOAL Newcastle (6,000 kcal/kg NAR).

ASEAN Reaches Regional Consensus over Rights of Migrant Workers

On Nov. 14, the 31st Association of Southeast Asian Nations (ASEAN) Summit in Manila concluded with Chair and Philippine President Rodrigo Duterte and fellow heads of state signing the ASEAN Consensus on the Protection and the Promotion of the Rights of Migrant Workers. The behind-the-scenes story is that from September until some three days before the Nov 13-14 Asean Summit, labour and foreign affairs ministers debated and subsequently approved the contents of this “landmark” document.