Indonesian government through Energy and Mineral Resources (EMR) ministry set its August thermal coal reference price at US$72.67 per metric ton - Photo: Special
JAKARTA (TheInsiderStories) – Indonesian government set coal supply for domestic market obligation (DMO) in total 128 million tons (MT) of coal, said the senior official on Thursday (01/10). This figure represents 25 percent of the total national coal production of 479.8 MT of coal.
Director General at the Energy and Mineral Resources ministry, Bambang Gatot Ariyono, said the allocation will be consumed by power plant sector around 95.7 MT of coal, cement sector 16.15 MT of coal, metallurgical is 5.4 MT of coal, fertilizer 1.4 MT of coal, and the remaining will be used in other sectors.

He revealed that the coal consumption in the electricity sector go up was triggered by the operation of the power plant that had been completed by state-owned power producer PT Perusahaan Listrik Negara and an independent power producer (IPP).

Based on Ministry data, in 2018, as many as 34 companies could not fulfill DMO requirements from 70 companies coal miner in the country. The ministry itself noted coal utilization for domestic needs reached 115 MT of coal throughout 2018. This figure increased 18.55 percent compared to 2017 at 97 MT of coal.

Over the past year, the country’ coal utilization recorded 528 MT of coal, was above the 2018 State Budget which only pegged 485 million tons. The increasing based on the government decision to give an extra quota for the coal miners on the high coal prices.

The average Reference Coal Price during January-December 2018 reached $98.96 per MT, up from the same period in 2017 of $85.92 a ton. Coming to 2019, the reference price is still has a downward trend. The government set a January 2019 benchmark rate of $92.41 per MT, or slightly lower than last month which set at $92.51 per MT.

On the other hand, the Director General for Electricity at the EMR Ministry Andy M. Sommeng, hopes that the total electricity investment will reach $12.04 billion throughout 2019. The majority of the investment is used to procure power plants, transmission and distribution, and substations.

Meanwhile, for 2018, the realization of investment in electricity was $11.8 billion, with details of PLN $6.81 billion, IPP $3.77 billion, business areas $141 million, operating permit $400 million, and the manufacturer $93 million.

Written by Daniel Deha, Email: theinsiderstories@gmail.com