Indonesia has set benchmark coal prices for sales to domestic power plants at $70 a ton for coal with calorific value of 6322 GAR, Energy and Mineral Resources Ministry said on its website, Friday, March 9, 2018.
If prices fall less than $70 a ton, it will use the monthly benchmark coal price, the ministry said.
For coal with other calorific values, prices should be calculated using the benchmark 6322 GAR price of $70 per ton.
Energy and Mineral Resources Miniser Ignasius Jonan said the measure to set special coal price for domestic electricity aims at “maintaining affordable electricity tariff for protecting competitive consumers’ and industrial purchasing power.”
The special coal price formula applies retroactively to January 1, 2018 until December 2019. “It means all contracts that have been ongoing since January 1, 2018, need to be adjusted,” the ministry said in the statement.
The Energy and Mineral Resources Ministry sets maximum sales volume for domestic utilities at 100 million tons per year or according to the country’s power plants’ consumption.
Companies which sell coal to domestic power plants may get permission to produce additional 10 percent of coal if they meet the requirements set by the government.
The special price only applies for sales to the national electricity, while sales for other purpose will still refer to the monthly coal benchmark price.
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