Bisnis.com, JAKARTA – The discourse on adjusting the domestic market obligation (DMO) benchmark price for coal was discussed again after the Ministry of Energy and Mineral Resources (ESDM) opened an option to evaluate the provision for capping coal prices of US$70 per metric ton.
As previously reported, the Director General of Mineral and Coal Revenue (Directorate General of Mineral and Coal) Muhammad Wafid said the evaluation would also target a special price for coal for the fertilizer and cement industry, which was recently set at US$90 per tonne.
The Indonesian Coal and Energy Suppliers Association (Aspebindo) proposed that the government apply a coal DMO price of US$90 per ton. The proposal was submitted in line with the Ministry of Energy and Mineral Resources (ESDM) plan to evaluate the DMO price of US$70 per metric ton.
Aspebindo welcomes the evaluation of the coal DMO price. The association views that the DMO price adjustment will make the domestic coal industry more competitive.
“The price of Coal DMO must be increased to at least the same as the Cement HBA at 90 US$/ton to secure the supply of coal, especially for PLN,” said Aspebindo Supervisory Board Ita Gayatri in an official statement.
Aspebindo also supports the Ministry of Energy and Mineral Resources to evaluate the price of new coal DMO by adjusting the export price or Indonesia Coal Index (ICI) and its impact on national electricity prices.
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