Indonesia plans to keep USD70/t coal price cap for PLN
2019-11-20 15:01:31 [Print]
Indonesia's energy minister Arifin Tasrif said on Tuesday his ministry plans to maintain a price cap on coal being sold to state electricity utility, PT Perusahaan Listrik Negara (PLN) next year.
The government capped the price of coal sold to PLN at USD70/t from early 2018 after the utility was told not to raise electricity tariffs for certain customers. The price cap was aimed at shielding PLN from cost fluctuations.
PLN is expected to resume to adjusting its electricity prices every three months in 2020 for customers, such as industrial users.
Tasrif, who was appointed minister last month for Joko Widodo's second presidential term, said he expects the coal price policy for PLN to remain unchanged.
When the price in Indonesian Coal Benchmark Price (HBA) drops below USD70/t, the domestic thermal coal price for power stations reverts to HBA.
The so-called domestic market obligation of 25% will also be kept, director general of coal and minerals Bambang Gatot Ariyono said. The rules require coal miners to sell 25% of their output to domestic buyers such as PLN.
The government capped the price of coal sold to PLN at USD70/t from early 2018 after the utility was told not to raise electricity tariffs for certain customers. The price cap was aimed at shielding PLN from cost fluctuations.
PLN is expected to resume to adjusting its electricity prices every three months in 2020 for customers, such as industrial users.
Tasrif, who was appointed minister last month for Joko Widodo's second presidential term, said he expects the coal price policy for PLN to remain unchanged.
When the price in Indonesian Coal Benchmark Price (HBA) drops below USD70/t, the domestic thermal coal price for power stations reverts to HBA.
The so-called domestic market obligation of 25% will also be kept, director general of coal and minerals Bambang Gatot Ariyono said. The rules require coal miners to sell 25% of their output to domestic buyers such as PLN.
