Jakarta –
Coal prices soared in the midst of increasing world energy needs. This makes coal companies tend to export rather than meet domestic needs.
The government itself has required the fulfillment of 25% for domestic needs from the production plan with a price pegged at US$ 70 per ton.
Minister of Energy and Mineral Resources Arifin Tasrif said the high disparity with domestic coal prices made coal companies tend to choose exports.
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“The current condition of high coal prices, companies tend to get better income, because there is such a large price disparity and this causes the potential for domestic industry to experience shortages,” he explained in a working meeting with Commission VII, Jakarta, Tuesday ( 9/8/2022).
He also said that the existence of sanctions in the form of compensation with small tariffs and payment of fines for those who violated the contract caused coal companies to prefer to pay these sanctions in order to export.
“Sanctions in the form of payment of compensation funds with small tariffs and payment of fines for those who violate the contract, cause coal companies to tend to prefer to pay sanctions and compensation, compared to the export value that can be obtained,” he explained.
“Therefore, there is a tendency to avoid contracts with domestic industries,” he added.
Therefore, Arifin said, there is a need for a Coal DMO public service agency (BLU) to ensure the availability of coal supply through the collection and distribution of compensation funds.
“So, in this case, a new policy is needed to ensure the availability of domestic coal supply through collection and distribution of compensation funds through coal DMO business service agencies,” he said.
See also the video ‘Sri Mulyani’s Version of Oil, Coal and CPO Price Prediction’:
(acd/zlf)
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