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Monday, 19 December 11
PLN WILL NO LONGER BUY COAL FROM TRADERS


COALspot.com - Indonesia's state electricity company PT Perusahaan Listrik Negara will no longer allow traders to become their suppliers, said, its president director Nur Pamudji to the Jakarta post.

According to an interview published in the Jakarta post, president director of PLN further said, " We have cut contracts with suppliers who failed to deliver coal as promised. We have informed our suppliers that they have to have their own coal mines or we will terminate their contract. We no longer allow traders to become our suppliers"

PLN, will also get more coal from coal contract of works (locally known as PKP2B or CCoW) holders.

"Previously, we only received supply from Arutmin, but in 2012, we’ll also get low-rank coal from Kideco Jaya Agung and additional supply from Kaltim Prima Coal (KPC). The total coal contract that we currently have is even higher than our need", Nur Pamudji said in his interview.

As the government has set the domestic market obligation ruling, in which PLN and independent power producers will get 57.5 million tons and  the government has also imposed a regulation on the coal price so that the supply is secured”, according to Nur Pamudji>

PT. PLN’s  subsidiary company PLN Batubara is responsible for  acquisition of coal mines and coal procurement for PLN.

To read full interview click here



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