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Thursday, 02 January 20
DMO 2020 PRICE SET FOR ELECTRICITY SECTOR - IAN WOLLFF
 On the 26th December 2019, the Minister of Energy and Mineral Resources (ESDM) issued the decree No. 261.K/30.MEM/2019 about the States needs for coal in 2020 [Domestic Market Obligation = DMO] that is effective from the 1st January 2020. It is good that the decree was issued prior to its application, and the socialization of the decree is much anticipated.
The first three stipulations simply set the DMO for coal producers at a minimum of 25% of their sales. If this commitment is not met, then the producers are “obliged to pay compensation” for the shortfall amount of DMO sales. Note that the nature of such compensation is not mentioned in this decree.
The remainder of the decree specifically addresses coal sold “for the supply of electricity for public use..” The DMO sales for the cement and other industries are not mentioned, and presumably this decrees price setting formula for the electricity industry may not apply to other DMO coal uses.
The decree sets the coal selling price to the domestic electricity market, based upon a reference coal quality, and at the Free On Board (FOB) sales point. It would appear the business entity providing electricity is now mandatory to buy coal FOB and be responsible for coal transport, and to prioritize long term contracts. Coal producers that do not meet their DMO commitments related to the domestic electric market will be subject to sanctions in the form of reducing quota for the following years approved production. There seems to be no mention on the differentiation of 25% overall DMO and the proportion to be committed to the electric industry.
The Decree’s attachment sets out the determination of the selling price for the supply of electricity for public interest. There is separate formula for when the coal reference price is equal or more than USD 70/ton FOB, and for when the coal reference price is less than USD 70/ton FOB. The formula considers variations in coal quality and provides a table of 77 Indonesian coal quality / brands. There is a third consideration in the calculation of coal sales price to the electricity supply for public interest related to Spot Sales. It would seem the formulae do not consider coking properties.
Ian Wollff
Principal Geologist. Independent Consultant
Originally Published on Linkedin on 1 January 2020
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Tuesday, 04 February 20
CAPE: THE AVERAGE EARNINGS PER DAY FELL BENEATH THE USD 4,000, A LEVEL CONSIDERABLY BELOW EVEN THE MOST CONSERVATIVE OPEX LEVELS - ALLIED
The recent slump in the dry bulk freight market may well have been expected to some degree, but despite this the shock was still overwhelming when ...
Monday, 03 February 20
KOWEPO INVITING BIDS FOR 2.46 MILLION TONS OF MIN.5700 AND MIN.5600 NCV COAL
COALspot.com: South Korea’s Korea Western Power Co., Ltd. (KOWEPO) has issued an international tender for total 2,460,000 tons of (Sub) Bitum ...
Sunday, 02 February 20
NOVEL CORONAVIRUS OUTBREAK IN CHINA - STANDARD CLUB
Members will be aware of the recent novel coronavirus outbreak in China, which has now been declared a global emergency by the World Health Organis ...
Sunday, 02 February 20
SUPRAMAX: A 52,000DWT SHIP WAS FIXED BASIS DELIVERY SOUTH KALIMANTAN TRIP TO INDIA, AT $6,000 - BALTIC BRIEFING
Capesize
The week proved conspicuous for all the wrong reasons. This was the week when the Baltic Capesize Index (BCI) turned negative, closing ...
Saturday, 01 February 20
50 MILLION PEOPLE QUARANTINED IN CHINA TO CONTAIN SPREAD OF CORONAVIRUS - HOW DOES IT AFFECT SHIPPING? - BIMCO
The outbreak of the novel coronavirus, declared a global health emergency by the WHO, has caused massive uncertainty across the global markets with ...
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- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- Africa Commodities Group - South Africa
- Billiton Holdings Pty Ltd - Australia
- SN Aboitiz Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Business Power Corporation, Philippines
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Sree Jayajothi Cements Limited - India
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Bayan Resources Tbk. - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- Latin American Coal - Colombia
- Timah Investasi Mineral - Indoneisa
- Carbofer General Trading SA - India
- Directorate Of Revenue Intelligence - India
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Vijayanagar Sugar Pvt Ltd - India
- GVK Power & Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IEA Clean Coal Centre - UK
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Australian Coal Association
- Orica Mining Services - Indonesia
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sical Logistics Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The State Trading Corporation of India Ltd
- Marubeni Corporation - India
- Dalmia Cement Bharat India
- Formosa Plastics Group - Taiwan
- SMG Consultants - Indonesia
- Samtan Co., Ltd - South Korea
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- Sinarmas Energy and Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- Xindia Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- McConnell Dowell - Australia
- Global Coal Blending Company Limited - Australia
- Posco Energy - South Korea
- Wood Mackenzie - Singapore
- Indonesian Coal Mining Association
- Larsen & Toubro Limited - India
- Ministry of Finance - Indonesia
- Port Waratah Coal Services - Australia
- PetroVietnam Power Coal Import and Supply Company
- Deloitte Consulting - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Link Ltd, New Zealand
- CNBM International Corporation - China
- Planning Commission, India
- Iligan Light & Power Inc, Philippines
- Thiess Contractors Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Intertek Mineral Services - Indonesia
- Siam City Cement PLC, Thailand
- Indian Oil Corporation Limited
- Riau Bara Harum - Indonesia
- Makarim & Taira - Indonesia
- OPG Power Generation Pvt Ltd - India
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- VISA Power Limited - India
- Madhucon Powers Ltd - India
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- Parry Sugars Refinery, India
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sarangani Energy Corporation, Philippines
- Bharathi Cement Corporation - India
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- PNOC Exploration Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Antam Resourcindo - Indonesia
- Parliament of New Zealand
- Salva Resources Pvt Ltd - India
- Goldman Sachs - Singapore
- Vedanta Resources Plc - India
- Semirara Mining and Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Australian Commodity Traders Exchange
- Krishnapatnam Port Company Ltd. - India
- Mjunction Services Limited - India
- Savvy Resources Ltd - HongKong
- Georgia Ports Authority, United States
- TNB Fuel Sdn Bhd - Malaysia
- Essar Steel Hazira Ltd - India
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- TeaM Sual Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Kalimantan Lumbung Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Energy Exchange, India
- Petron Corporation, Philippines
- Power Finance Corporation Ltd., India
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Standard Chartered Bank - UAE
- Economic Council, Georgia
- Tamil Nadu electricity Board
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- SMC Global Power, Philippines
- Barasentosa Lestari - Indonesia
- PTC India Limited - India
- Meenaskhi Energy Private Limited - India
- Independent Power Producers Association of India
- Bhatia International Limited - India
- Anglo American - United Kingdom
- Eastern Energy - Thailand
- Ambuja Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Indika Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Wilmar Investment Holdings
- Sojitz Corporation - Japan
- Mercuria Energy - Indonesia
- ICICI Bank Limited - India
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- Metalloyd Limited - United Kingdom
- Oldendorff Carriers - Singapore
- Renaissance Capital - South Africa
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- ASAPP Information Group - India
- Leighton Contractors Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Agrawal Coal Company - India
- Interocean Group of Companies - India
- Karaikal Port Pvt Ltd - India
- Central Electricity Authority - India
- Mintek Dendrill Indonesia
- Orica Australia Pty. Ltd.
- New Zealand Coal & Carbon
- Electricity Generating Authority of Thailand
- Rashtriya Ispat Nigam Limited - India
- Merrill Lynch Commodities Europe
- Alfred C Toepfer International GmbH - Germany
- Bhushan Steel Limited - India
- Attock Cement Pakistan Limited
- Lanco Infratech Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Medco Energi Mining Internasional
- Asmin Koalindo Tuhup - Indonesia
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Grasim Industreis Ltd - India
- Trasteel International SA, Italy
- GAC Shipping (India) Pvt Ltd
- London Commodity Brokers - England
- International Coal Ventures Pvt Ltd - India
- Eastern Coal Council - USA
- Jorong Barutama Greston.PT - Indonesia
- LBH Netherlands Bv - Netherlands
- Siam City Cement - Thailand
- Baramulti Group, Indonesia
- Therma Luzon, Inc, Philippines
- The Treasury - Australian Government
- Central Java Power - Indonesia
- Malabar Cements Ltd - India
- PowerSource Philippines DevCo
- Kartika Selabumi Mining - Indonesia
- Bulk Trading Sa - Switzerland
- San Jose City I Power Corp, Philippines
- Star Paper Mills Limited - India
- Minerals Council of Australia
- Videocon Industries ltd - India
- Banpu Public Company Limited - Thailand
- Meralco Power Generation, Philippines
- Aboitiz Power Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Kobexindo Tractors - Indoneisa
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