Energy Minister Proposes 5-Year Contract for PLN's Coal Supply


The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif suggested that PT Perusahaan Listrik Negara (PLN) revise the coal purchase contract for power plants into a five-year long-term contract. That way, the state-owned power producer can avoid another energy crisis. PLN can review coal prices based on realization per quarter or semester of the current year, referring to the domestic market obligation (DMO) price of US$70 per ton.

Arifin said PLN could get certainty of coal supply in the long term by signing a five-year contract. "In detail, let the management of PLN carry out the terms, how the terms can secure the supply," Arifin said on Wednesday.

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