Coal Sale Price for Electricity Supply for Public Interest Friday, March 9, 2018

  • 2018.03.09 Friday
  • 16:20

  EMR Communications Team

    Fact Sheet

Coal Sale Price for Electricity Supply for Public Interest

          Jakarta, March 9, 2018

 

1. The Government through the Ministry of Energy and Mineral Resources (ESDM), today, Friday (9/3) sets the price of coal for national electricity, through Ministerial Decree (Kepmen) ESDM No. 1395K / 30 / MEM / 2018 About Coal Sale Price for Provision Power for Public Interest.

1. The Government through the Ministry of Energy and Mineral Resources (ESDM), today, Friday (9/3) sets the price of coal for national electricity, through Ministerial Decree (Kepmen) ESDM No. 1395K / 30 / MEM / 2018 About Coal Sale Price for Provision Power for Public Interest.

 

2. Decree of the Minister of Energy and Mineral Resources, taking into account the Government Regulation (PP) Number 8 of 2018 concerning the Amendment of the Fifth Regulation of PP No. 1 of 2014 concerning Mineral and Coal Mining Business Activities, and Regulation of the Minister of Energy and Mineral Resources Number 19 of 2018 on the Second Amendment of the Minister of Energy and Mineral Resources Number 7 Year 2017 on the Procedures of Selling Price of Metals and Coal Minerals Sales.

 

3. The government sets the selling price of coal for domestic coal-fired power plant at USD 70 per ton for calorific value of 6,322 GAR or using the reference coal price (HBA) if HBA is below USD70 per ton.

 

4. For coal price with other calorific value, converted to coal price at calorific value 6.322 GAR is based on calculation in accordance with applicable provisions.

 

5. Such special pricing shall be applied retroactively from 1 January 2018 to December 2019. That is, sales contracts which have been running since January 1, 2018 will be adjusted.

 

6. The ESDM Ministry determines the maximum volume of coal purchase for the power plant of 100 million tons per year or in accordance with the coal requirement for power generation.

 

7. The amount of royalty and tax payment is calculated based on transactional price.

 

8. A company that sells coal for the national electricity may be given an additional production of 10 percent if it meets the requirements in accordance with applicable regulations.

 

9. Such pricing applies only to the sale of national electricity. Meanwhile, price fixing outside of interest is still referring to HBA.

 

10. Minister of Energy and Mineral Resources Ignatius Jonan confirmed the determination of the selling price of coal for the steam power plant to maintain electricity, in order to protect the purchasing power of people and competitive industries.

 

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