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Saturday, 28 July 18
GOVERNMENT TO REVOKE COAL PRICE CAP POLICY - JP
The Jakarta PostThe government plans to revise its domestic market obligation (DMO) on coal price next week during a high-level meeting with President Joko “Jokowi” Widodo, with among considerations being to increase state revenue from coal, the efforts of which are currently hampered because of the formula.  
 
Deputy Energy and Mineral Resources Minister Arcandra Tahar said on Friday that the ministry would lead a team to find a new formula for the DMO on coal policy. 
 
“We didn’t cancel the policy [DMO for coal], but the government has decided to cancel the price cap [selling price for power plants] and to find another formula,” he said. 
 
The DMO is a policy that obliges coal miners to allocate 25 percent of production for the domestic market and to cap the selling price at no higher than US$70 per ton for state-electricity firm PLN’s coal-fired power plants. 
 
However, the price cap for coal has resulted in state revenue taking a hit, as the selling price of coal is lower than the market price, which is currently around $100 per ton. 
 
It has been reported that the new formula will be similar to incentives for biodiesel.
 
Indonesian Coal Mining Association chairman Pandu Sjahrir  said previously that the policy was confusing as not all miners produced coal in accordance to the needs of  PLN’s power plants.  
 
Hence, more than six months since the implementation of the policy, not all coal miners have realized their obligation to sell coal under the market price to PLN.


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Recent News

Friday, 03 August 18
HBA HAS RISEN 28.41 PER CENT IN A YEAR TO BE AT THEIR HIGHEST LEVELS SINCE JANUARY 2012
COALspot.com: The benchmark price of Indonesian thermal coal has risen 28.41 per cent in a year to be at their highest levels since January 2012.&n ...


Thursday, 02 August 18
INDO / CHINA COAL RV'S IS PAYING AROUND USD 11,000 TO SUPRAS BSS DELIVERY SINGAPORE - FEARNLEYS
Capesize The counter seasonally strong market during the summer months bodes well for the remainder of the year.    According ...


Wednesday, 01 August 18
JOKOWI CANCELS PLAN TO REVOKE COAL DMO - JP
President Joko "Jokowi" Widodo on Tuesday has canceled the government’s plan to revoke the domestic market obligation (DMO) for coa ...


Wednesday, 01 August 18
SHIPPING MARKET INSIGHT - GIANNIS ANDRITSOPOULOS
The dry bulk market activity over the past four weeks has remained stable when compared to the previous months. There are concerns with regards to ...


Tuesday, 31 July 18
INDONESIA UNLIKELY TO CHANGE COAL SUPPLY, PRICING RULES UNTIL 2019 - REUTERS
Indonesia is unlikely to change its rules on domestic coal supply and pricing until 2019, Coordinating Maritime Minister Luhut Pandjaitan said on M ...


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