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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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Sunday, 22 December 19
TRADING PLACES FOR 2020 - BALTIC EXCHANGE
In the sea of 2020 predictions, Saxo Bank’s Outrageous Predictions sail their own very unique course. For nearly 20 years the Danish investme ...
Saturday, 21 December 19
SUPRAMAX: A 63,000 DWT VESSEL, OPEN CIGADING, FIXED A TRIP VIA INDONESIA, REDELIVERY WEST COAST INDIA, AT $8,500 - BALTIC BRIEFING
Capesize
The Capesize market this past week has been attempting to recalibrate itself in consideration of weakening freight levels and increasi ...
Saturday, 21 December 19
SHIPPING'S SUPPLY AND DEMAND TRENDING OFF BALANCE - BIMCO
One of the most worrying trends that has developed recently – which will affect shipping demand in the years to come – is the falling t ...
Friday, 20 December 19
CHINA'S BENCHMARK POWER COAL PRICE REMAINS FLAT - XINHUA
China’s benchmark power coal price remained flat during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Thursday, 19 December 19
COAL POWER GENERATION CONTINUES TO DECLINE IN GERMANY: DESTATIS, XINHUA REPORTED
The volume of electricity generated in coal-fired power plants in Germany decreased “markedly” by 37 percent to 34 billion kilowatt-hou ...
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- Tata Chemicals Ltd - India
- TeaM Sual Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Gujarat Sidhee Cement - India
- Banpu Public Company Limited - Thailand
- Salva Resources Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- IEA Clean Coal Centre - UK
- Baramulti Group, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Xindia Steels Limited - India
- London Commodity Brokers - England
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Star Paper Mills Limited - India
- Oldendorff Carriers - Singapore
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Thiess Contractors Indonesia
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Mercuria Energy - Indonesia
- Vizag Seaport Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Karaikal Port Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Leighton Contractors Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Kumho Petrochemical, South Korea
- Carbofer General Trading SA - India
- Sinarmas Energy and Mining - Indonesia
- International Coal Ventures Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Wilmar Investment Holdings
- Krishnapatnam Port Company Ltd. - India
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- Central Java Power - Indonesia
- Ministry of Mines - Canada
- GVK Power & Infra Limited - India
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- Indogreen Group - Indonesia
- Directorate Of Revenue Intelligence - India
- The State Trading Corporation of India Ltd
- Mercator Lines Limited - India
- The Treasury - Australian Government
- Port Waratah Coal Services - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Malabar Cements Ltd - India
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Mjunction Services Limited - India
- Edison Trading Spa - Italy
- Alfred C Toepfer International GmbH - Germany
- Ceylon Electricity Board - Sri Lanka
- Minerals Council of Australia
- Wood Mackenzie - Singapore
- Orica Mining Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Singapore Mercantile Exchange
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- Price Waterhouse Coopers - Russia
- Siam City Cement - Thailand
- Intertek Mineral Services - Indonesia
- Medco Energi Mining Internasional
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- ASAPP Information Group - India
- Videocon Industries ltd - India
- White Energy Company Limited
- TNB Fuel Sdn Bhd - Malaysia
- Chettinad Cement Corporation Ltd - India
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Authority, New Zealand
- The University of Queensland
- Ambuja Cements Ltd - India
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Standard Chartered Bank - UAE
- Energy Link Ltd, New Zealand
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- PowerSource Philippines DevCo
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- VISA Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bhatia International Limited - India
- Australian Commodity Traders Exchange
- Makarim & Taira - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Riau Bara Harum - Indonesia
- GMR Energy Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rio Tinto Coal - Australia
- Australian Coal Association
- Ministry of Transport, Egypt
- Therma Luzon, Inc, Philippines
- Bukit Makmur.PT - Indonesia
- LBH Netherlands Bv - Netherlands
- Jaiprakash Power Ventures ltd
- Binh Thuan Hamico - Vietnam
- Lanco Infratech Ltd - India
- Bayan Resources Tbk. - Indonesia
- Independent Power Producers Association of India
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- Billiton Holdings Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Posco Energy - South Korea
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Mintek Dendrill Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indonesian Coal Mining Association
- Globalindo Alam Lestari - Indonesia
- Latin American Coal - Colombia
- Bukit Asam (Persero) Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Toyota Tsusho Corporation, Japan
- Holcim Trading Pte Ltd - Singapore
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Marubeni Corporation - India
- PNOC Exploration Corporation - Philippines
- Cement Manufacturers Association - India
- Tamil Nadu electricity Board
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Deloitte Consulting - India
- Kepco SPC Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- Jindal Steel & Power Ltd - India
- European Bulk Services B.V. - Netherlands
- Parry Sugars Refinery, India
- Directorate General of MIneral and Coal - Indonesia
- Agrawal Coal Company - India
- Africa Commodities Group - South Africa
- Savvy Resources Ltd - HongKong
- Global Coal Blending Company Limited - Australia
- Central Electricity Authority - India
- Anglo American - United Kingdom
- Coastal Gujarat Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- Indo Tambangraya Megah - Indonesia
- Coal and Oil Company - UAE
- Thai Mozambique Logistica
- Planning Commission, India
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Kalimantan Lumbung Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- CIMB Investment Bank - Malaysia
- IHS Mccloskey Coal Group - USA
- Sakthi Sugars Limited - India
- India Bulls Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Petron Corporation, Philippines
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- Sree Jayajothi Cements Limited - India
- Madhucon Powers Ltd - India
- Ind-Barath Power Infra Limited - India
- Vedanta Resources Plc - India
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Bulk Trading Sa - Switzerland
- Grasim Industreis Ltd - India
- ICICI Bank Limited - India
- MS Steel International - UAE
- Metalloyd Limited - United Kingdom
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- Economic Council, Georgia
- Iligan Light & Power Inc, Philippines
- Indian Oil Corporation Limited
- Barasentosa Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Renaissance Capital - South Africa
- PTC India Limited - India
- Coalindo Energy - Indonesia
- McConnell Dowell - Australia
- Rashtriya Ispat Nigam Limited - India
- Chamber of Mines of South Africa
- Meralco Power Generation, Philippines
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