Darwin Zahedi Saleh, Indonesia's minister of energy and mineral resources, on Friday appealed to local coal companies to sell their fuel to state utility Perusahaan Listrik Negara at below global market prices.<\/p>\n
\u201cI hope that all coal companies in Indonesia will sacrifice for the best interest of the nation,\u201d he told reporters.<\/p>\n
His comments came the day after PLN Chairman Dahlan Iskan said the power company was facing problems securing enough coal to meet the country\u2019s growing demand for electricity.<\/p>\n
According to an Energy Ministry decree, the price of coal in 2011 would be determined on the 2010 fourth-quarter average. December\u2019s average national price was $103.40 per metric ton. But prices at Australia\u2019s Newcastle port, which serves as a benchmark for Asia, have risen 8 percent to $129.9 per metric ton as of Jan. 7, up from $119.47 per ton in December.<\/p>\n
Coal producers have not reacted positively to being asked to sell at below market rates. The Indonesian Coal Mining Association (APBI) said its members had no choice but to increase prices in line with rising demand.<\/p>\n
\u201cInternational coal prices keep increasing, so we have to sell according to global prices,\u201d APBI executive director Supriatna Suhala said on Thursday.<\/p>\n
Coal prices are rising as harsh winter weather across the globe and floods in Australia are driving up demand, he added.<\/p>\n
PLN has contracts with 53 suppliers to provide 55.8 million tons of coal to fuel its power plants this year, but it failed to lock down prices. Providers have said they would sell their coal through business-to-business contracts, which follow international pricing.<\/p>\n
\u201cWe will stick to the business-to-business agreement. That\u2019s all,\u201d Andre Mamuaya, corporate secretary of Adaro Indonesia, told the Jakarta Globe. He said companies, including Adaro, were still negotiating prices with PLN. He said Adaro would stick to its original offer to PLN, which is based on the international coal index price.<\/p>\n
Adaro is set to provide 10 million tons of coal to PLN this year. Other suppliers include Arutmin Indonesia, Tambang Batubara Bukit Asam, Kaltim Prima Coal and Berau Coal. Rosan Perkasa, president director of Berau Coal, and Sukrisno, president director of Bukit Asam, did not return calls for comment.<\/p>\n
Nur Pamudji, PLN\u2019s director of primary energy, said this week that, assuming a 20 percent increase in coal prices, the utility would need more than Rp 2 trillion in additional electricity subsidies this year.<\/p>\n
PLN will receive Rp 41.2 trillion ($4.6 billion) in electricity subsidies this year, down from Rp 55.1 trillion in 2010.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/make-sacrifices-to-save-pln-indonesia-govt-begs-miners-1295059671", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }