Coal DMO: Special Price can be Extended

The policy contained in the Decree of the Minister of Energy and Mineral Resources (ESDM) No.206/2021 sets a special price of US$90 per metric ton free on board (FOB) for the two user industries. The policy follows the pattern applied to the supply of coal for domestic steam power plants (PLTU).

Since 2018, domestic coal-fired power plants have enjoyed a special price of US$70 per tonne. Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, said that before the policy ends at the end of March, the Ministry of Energy and Mineral Resources will evaluate the realization and needs of the industry since it was implemented on November 1, 2021. "We will consider the association's proposal to extend the policy which was originally valid until March 31. We will discuss and invite related parties," said Ridwan in a hearing with Commission VII DPR, Tuesday (25/1). If the DMO quota has been met, the company concerned is only allowed to export. In addition, he said the obligation would not burden coal companies because the price of US$90 per metric ton was still above the price paid by PLN of US$70 metric ton. The Ministry of Industry said that the availability and high price of coal still overshadows the domestic cement and fertilizer industry. The Ministry of Industry also proposes to increase the DMO of coal companies to 30 to 35 percent. To overcome the uncontrollable increase in coal prices, the Director General of the Chemical, Pharmaceutical and Textile Industry (IKFT) of the Ministry of Industry Muhammad Khayam asked for the application of special prices for the cement and fertilizer industry to be extended

|•SOURCE•| Image :THE JAKARTA POST |

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