Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources\n(ESDM) Bahlil Lahadalia has opened the option to evaluate the domestic\ncoal price, particularly for the needs of PT PLN (Persero) power plants.\nThe government is recalculating the coal price formula for the domestic\nmarket (Domestic Market Obligation\/DMO).<\/p>\n
The coal price for domestic power plants has not changed since 2018.\nThe government set the special coal price for PLN at US$70 per\ntonne.<\/p>\n
Bahlil explained that the government needs to be prudent in setting\nprices due to increased operational cost burdens at the upstream level.\nThe government is also considering various updated economic parameters\nin the mining sector.<\/p>\n
\u201cWe are calculating the plus-minus so that PLN is not disadvantaged,\nbut the entrepreneurs are also not disadvantaged,\u201d Bahlil said when met\nat the Coordinating Ministry for Economic Affairs office in Jakarta on\nWednesday (18\/6\/2026).<\/p>\n
Bahlil stressed that the plan to evaluate the DMO price was triggered\nby field conditions where the stripping ratio (SR) for medium-calorie\ncoal has become increasingly high. This is calculated to have increased\nthe production costs that entrepreneurs must bear compared to previous\nyears.<\/p>\n
\u201cOh yes, for medium coal, the SR is already at 8-12%, so the\nproduction cost is already high. So we also have to be wise so that our\nentrepreneur friends are not bought at a very cheap price. If they buy\nat a loss-making price, it\u2019s impossible. Because we also have to protect\nthe entrepreneurs so they don\u2019t lose money,\u201d he explained.<\/p>\n
In addition to production costs, the government is also hearing\ncomplaints from business actors regarding the Coal Reference Price (HBA)\nbenchmark, which is considered to have not changed since 2019.<\/p>\n
\u201cThat is indeed one of the considerations that we will calculate,\u201d\nsaid Bahlil.<\/p>\n
On the other hand, the government has confirmed that the coal supply\nfor PLN until mid-year is relatively secure despite technical\nconstraints on certain calorie types. Out of a total requirement of 154\nmillion tonnes in 2026, PLN has already secured contract commitments for\n134 million tonnes.<\/p>\n
\u201cFrom the total PLN requirement of 154 million tonnes in 2026, PLN\nhas already contracted 134 million. So there is only about 18 to 20\nmillion remaining. So overall, there is no problem,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-evaluates-dmo-coal-price-for-power-plants-heres-why-1781794395", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }