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Monday, 11 October 10
INDONESIAN POWER PLANTS AND OTHER INDUSTRIES TO BURN 78.97 MLN TONS OF COAL IN 2011


COALspot.com: The Minister of Energy and Mineral Resources of Indonesia has issued a ministerial degree 2360 K/30/MEM/ 2010 related to Domestic market obligation (DMO) for 2011.

According to the decree, the total requirement of coal for the domestic market in 2011  is around 78.97 million tons up 21.56 percent compared to 2010 year requirement of 64.96 million tons.  The total coal production is estimated at 326.65 million ton in 2011, which is higher by  64.17 million ton compared to this year production estimation of 262.48 million tons.  

Around 247.68 million tons of coal will be expected to be shipped out in 2011.

42 CCoW holders, 10 IUP holders and one state owned mining company is required to supply 78.91 million tons of coal to  the domestic market in 2011.  State owned power producer PT.PLN is expected to consume around 55.82 million tons or 70.69 percent of total allocated coal for the domestic market in 2011.

State owned power producer will be expected to consume low GCV coal such as 4,000 - 5200 (GAR) kcal/kg coal and other industries are expected to consume coal with calorific value ( GAR) of 4100 – 6500 kcal/kg. Around 66.28 million tons of coal or 83.93 percent of total coal allocated for the domestic market will be supplied to power producers and remaining  for other industries such as cement, fertilizer and Textile.

According to market players, the price of coal for domestic market to be negotiated and finalized by parties involved or through tender process. Hence price of coal will be decided based on government declared monthly coal price reference, market condition, terms of payment, supply period and other general contractual terms and conditions.

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