The government has not yet determined the special price of coal for domestic market bond/ DMO. The proposal from PLN will be discussed with independent power producer (IPP) and coal producers to accommodate all parties concerns.
Ignatius Jonan, Minister of Energy and Mineral Resources, said the special price for DMO coal is proposed by PLN to the government to make electricity rates more affordable to the public. “The Ministry has not taken any decision,” said Jonan in a press release.
According to Jonan, the affordable electricity rate should be the concern of all parties. However, the Government should also pay attention to business continuity in the form of fair primary energy prices and support the sustainability of related industries.
“The primary energy price for the power plant is one of the determinants of electricity rate. There are still a number of other components that can be efficient by PLN to generate competitive production costs and affordable electricity rate,” said Jonan.
Previously, DMO coal special price discourse made coal producers aware that their earnings would be depressed. Some producers that supply coals to PLN are Bukit Asam Tbk (PTBA), Bumi Resources Tbk (BUMI), Adaro Energy Tbk (ADRO), and Indo Tambangraya Megah Tbk (ITMG). (*)