No Supply To Power Plant, Mining Company Will Be Sanctioned

By : Ahmad Fadli Dan Aldo Bella Putra | Saturday, May 26 2018 - 16:30 IWST

Harga Batu Bara Naik 23% Pada November 2016
Harga Batu Bara Naik 23% Pada November 2016

INDUSTRY.co.id - Jakarta - The Ministry of Energy and Mineral Resources (ESDM) prepares sanctions for coal mining companies that do not want to supply to the electricity sector.

Director General of Mineral Coal of the Ministry of Energy and Mineral Resources, Bambang Gatot, said that coal companies that do not meet the supply of coal in the country, especially the electricity sector by 25 percent of total production, will be subject to production cuts in the Work Plan and Budget (RKAB) next year.

"If you do not want to supply the first RKAB will be reduced, next year RKAB will be reduced in accordance with the obligations," said Bambang, Thursday (24/05/2018).

According to Bambang, the government has issued a special coal price regulation for the electricity sector, with the highest price of USD 70 per ton.

"So for coal we make a benchmark of the benchmark price of coal sales," he said.

Until May 22, 2018, coal that has been absorbed by the electricity sector reached 32.6 million tons. The coal is supplied from the Coal Concession Working Agreement (PKP2B) of 16.9 million tons. Mining Business License (IUP) of SOEs of 4.2 million tons, Foreign Investment IUP (PMA) of 117.2 thousand tons, other IUP 11.4 million tons.

"For the total realization of coal absorption of the electricity sector until May 22 amounted to 32.6 million tons," he said.

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