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Wednesday, 16 June 10
INDONESIAS STATE OWNED ELECTRICITY COMPANY WILL CONSUME 95.30 MILLION TONS OF COAL IN 2014


COALspot.com: Indonesia's state owned  electricity company forecasted  its coal requirement in 2014 would be around 95 million tons. 

Quality ( Typical)
2010
2011
2012
2013
2014
4,200 Kcal/kg (arb)
8.20
25.80
32.20
35.4
44.30
5,100 Kcal/kg (arb)
27.70
28.70
36.90
43.20
42.10
6,100 Kcal/kg (arb)
4.90
4.90
8.90
8.90
8.90
Total
40.80
59.40
77.00
87.50
95.30
(In million tons)

The Indonesian domestic coal Requirements will be expected to increase drastically once all the planned power plants commence operation as per schedule. The required coal fuel may not a problem for PLN as DMO was guaranteeing the supply of coal to PLN from mining company by Minister Regulation 34/2009.

The Mining Law 04/2009 provides that the DMO should be set by Government Regulation. The Minister of Energy and mineral resources had already issued PerMen 34/2009 on this matter and followed by government regulation issued in March 2010 provides the legal basis for the Ministerial Regulation.

As per PerMen34, mining companies must comply with the domestic market obligation (DMO) by selling coal to domestic consumers.

Domestic users must submit their forecasted requirements of coal by no later than March of the preceding year. The Minister reviews and calculates the domestic requirements and then, issue a decree on the minimum DMO percentage by no later than June of the preceding year

There are provisions for a minimum floor price for DMO sales, which will be subject to Ministerial Regulation. 

Mining companies are allowed to export coal once they meet the domestic Market obligations.

According to forecasted domestic requirement and production of coal, around 25-30 percent of coal produced by Indonesian miners may be allocated to the domestic market and remaining quantity to be allowed for the export Market.

Indonesian mining association is forecasting around 320 million tons of coal will be produced in 2010.



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