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

Summary

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.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.