PLN Asks ESDM Ministry to Control DMO Coal Price

By : Hariyanto And Aldo Bella Putra | Friday, February 09 2018 - 23:00 IWST

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INDUSTRY.co.id - Jakarta - PT Perusahaan Listrik Negara (Persero) has asked the Ministry of Energy and Mineral Resources (ESDM) to control domestic coal prices or Domestic Market Obligation (DMO) in order to increase Electricity Basic Tariff considering 60% of PLN's coal-fired power plants.

"Because so far we have little power to be able to set the price directly with coal producers," said Director of East Java Regional PLN, East Java, Bali and Nusa Tenggara (JTBN) Djoko R Abumanan, Jakarta, Thursday (8/2/2018).

He appreciated the government's follow-up to the demand for DMO coal prices. But PLN does not have the power to be able to realize itself.

The price of coal has penetrated US $ 100 per metric ton. Rising prices of new stone is certainly a burden of PLN's finances. For that, take quick steps to overcome this.

"The need for coal continues to increase and we expect to get a solution in the middle of the price also continues to soar like today. We expect the regulator so that the price of DMO is in accordance with the state budget that is at the level of US $ 60," he said.

Director General of Electricity at the Ministry of Energy and Mineral Resources, Andi Norsaman Sommeng, said the government has not been able to make a decision.

The government is giving time to PLN and coal businessmen for deliberation. The policy will be stabilized after both parties agree on the price. Then the form will be a regulation set by the Minister of Energy and Mineral Resources.

The desire of the government, he added, the two sides can be equally profitable. Moreover electricity tariffs remain affordable for all walks of life. "If I'm the important electricity price baseball rise," he said.