Coal is Abundant But PLN is Critical, This Needs to be Improved

Jakarta, CNBC Indonesia Several power plants of PT PLN (Persero) experienced a coal supply crisis because there were dozens of companies, 34 coal companies to be exact, which did not fulfill their commitments to PLN during January 1-July 31, 2021.

On the other hand, the price disparity between the domestic price of coal and the price in the international market is now much different. This price disparity is also said to be the trigger for coal producers to be reluctant to sell coal domestically.

So, how to avoid this condition so it doesn’t happen again in the future?

Chairman of the Indonesia Mining Energy Forum (IMEF) Singgih Widagdo sees that there are several steps that can be taken to overcome this problem.

First, seeing the problem of meeting domestic needs (DMO) as a supply chain problem (supply chain). So that PLN can accept various types of grades, according to him, it is necessary to provide a coal processing plant (blending plant) or coal processing plant (CPP)

Second, the evaluation of this DMO must be carried out every three months instead of being carried out annually.

“So that PLN’s needs are monitored, supply is also monitored, commitments and punishment/reward more assertive because there are also many large companies that can fulfill the above DMO,” he told CNBC Indonesia, Friday (13/08/2021).

“In essence, how to repair PLN, how to prepare coalĀ processing plant because there are many variations of coal in Indonesia. Blue print there must be first, who builds it is a problem later,” he added.

According to Singgih, the problem of domestic coal supply must be improved continuously.

Previously, the Director of Mineral and Coal Receipts of the Directorate General of Mineral and Coal (Ditjen Minerba) of the Ministry of Energy and Mineral Resources, Muhammad Wafid, said that several power plants were in critical condition, where the stock of coal in some PLTUs was less than 10 days. Thus, this triggers the Ministry of Energy and Mineral Resources to impose sanctions on 34 coal companies that do not fulfill their obligations, on August 7, 2021.

But now, almost a week after the 34 coal companies were imposed export ban sanctions, the condition of coal supply at several power plants has improved. This was disclosed by the Director of Primary Energy PLN Rudy Hendra Prastowo.

“There has been an increase. Commitment from suppliers has also increased,” he told CNBC Indonesia, Thursday (12/8/2021).

[Gambas:Video CNBC]




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