Luhut’s Order, Ministries/Institutions Are Asked to Think About the Fate of Coal Supply for PLN


Suara.com – The Coordinating Minister for Maritime Affairs and Investments (Menko Marves), Luhut Binsar Pandjaitan, asked the Cross-Ministerial/Institutional Team (K/L) consisting of the Coordinating Ministry for Maritime Affairs, the Ministry of Trade, the Ministry of Energy and Mineral Resources, and PLN to immediately prepare a medium-term solution for the completion of coal supply. domestically (Domestic Market Obligation/DMO) for power plants owned by PT PLN (Persero).

For a short-term solution to meet the needs of PLN’s PLTU and IPP HOP in January, the government has issued various policies and interventions to meet supply allocation and transportation availability to achieve a minimum HOP of 15 days and a minimum HOP of 20 days for critical PLTUs.

In today’s coordination meeting, PLN conveyed the following developments:

1. To meet the needs of the HOP (Day of Operation) for PLTU PLN and IPP in January 2022, in accordance with the direction of the Minister of Energy and Mineral Resources (end of the month at least 15 HOP and for remote and critical areas above 20 HOP) a coal supply of 16.2 million MT is required .

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“The supply shortage of 2.1 million MT that was reported yesterday has been fulfilled from the additional assignment of the Director General of Mineral and Coal on January 9, 2022 and the engagement will be completed no later than January 11, 2022,” said Luhut in his press statement, Monday (10/1/2022). .

2. The total need for the fleet to transport coal to meet the HOP target at the end of January 2022 is 130 vessel shipments and 771 barge shipments. From the fleet shortage of 18 vessels and 211 barges, 11 vessels and 187 barges have been fulfilled.

“The rest are still in the nomination process and all of them are guaranteed by INSA, according to the time & location that has been determined by PLN,” he said.

3. With the fulfillment of additional coal supplies and transportation fleets, intervention measures will provide a positive correction to the HOP which was originally in a crisis condition to a minimum of 15 HOP and for remote and critical areas above 20 HOP.

4. The results of the Minerba team’s field operations with the PLN team regarding coal cargoes for export in South Kalimantan and East Kalimantan, some have been successfully followed up. A total of 62.5 thousand MT of coal cargo destined for export, with the support of all parties including the Director General of Hubla, was successfully diverted to domestic destinations and immediately headed to PLTU Paiton 9.

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Meanwhile, based on reports from PLN and input from various K/L, Coordinating Minister Luhut gave the following directions:

  1. Coal supply contracts to PLN must use the term CIF (Cost, Insurance, Freight), so logistics and delivery arrangements are the responsibility of the coal supplier. So that PLN can focus on its core business to provide reliable electricity.
  2. PLN to buy coal from coal mining companies that have good credibility and commitment to compliance. Don’t buy from traders who don’t own mines anymore. As well as using long-term contracts to ensure supply. PLN must also increase the coal unloading capability in each PLTU.
  3. As of today, seeing the condition of PLN’s supply which is much better, for 14 ships that already have a full load of coal, and have been paid for by the buyer, so that they can be immediately released for export. This number of ships must be verified by the Directorate General of Mineral and Coal and the Directorate General of Sea Transportation (Hubla). Bakamla also needs to carry out supervision so that no ships come out outside the list that has been verified by the Directorate General of Mineral and Coal and Hubla.
  4. For barges that load coal for export, it is still directed to meet the needs of PLTUs that still need supplies. So it is not allowed to export.
  5. The government will re-evaluate for the opening of exports on Wednesday (12/1/2022). There are several things that need to be studied by the cross-ministerial team (Kemendag, Kemenko Marves, Kemen ESDM, and PLN) to decide before export is opened as follows:
    a. How will this export mechanism be opened regarding the fulfillment of DMO?
    b. How about exports for coal companies that do not have a contract with PLN or whose coal specifications are not required by PLN?
    So that on Wednesday, if the export opening is decided, it will still be done gradually.
  6. 14 days since exports opened, all coal contracts for PLN (including IPP) in 2022 have been confirmed along with the monthly allocation for each coal supplier and the allocation to the PLTU. The fulfillment of this DMO must be evaluated every month by the Ministry of Energy and Mineral Resources.
  7. Regarding the medium-term solution, Coordinating Minister Luhut asked for a cross-ministerial team to prepare a BLU solution for coal levies. Coordinating Minister Luhut asked that it be explained within 7 days.

Source: Suara.com – Berita Terbaru Bisnis, Ekonomi, Investasi Indonesia by www.suara.com.

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