Jakarta, CNBC Indonesia – The critical condition of domestic coal supply, particularly for power generation, has had a tremendous effect. This can be seen from the direct involvement of the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan to President Joko Widodo (Jokowi) to overcome this problem.
How not to interfere, the article is that if PT PLN (Persero) as the operator of the power plant and also the private electricity developer (Independent Power Producer/ IPP) really don’t get a supply of coal, so people’s power outages are a threat.
As is known, the lack of coal supply for power plants in the country could threaten the electricity supply for 10 million PLN customers, ranging from the general public to industries in Java, Madura, Bali (Jamali), and non-Jamali.
Nearly 20 Steam Power Plants (PLTU) with a total power of around 10,850 Mega Watt (MW) are threatened with extinction if coal supply for power plants is not supplied by coal companies.
This condition also made President Joko Widodo (Jokowi) furious and finally intervened in handling domestic coal supply.
On Monday (03/01/2022), the President threatened to revoke not only export permits, but also Mining Business Permits (IUPs) for coal companies that do not fulfill their domestic coal supply obligations (Domestic Market Obligation/ DMO), following the critical condition of coal supply for PT PLN (Persero) power plants.
Jokowi emphasized that mining companies must comply with the DMO rules, especially for the PT PLN (Persero) power plant. According to him, this is absolute and non-negotiable.
“There is already a DMO mechanism that requires mining companies to fulfill PLN’s generators. This is absolute, it must not be violated for any reason. Companies that cannot fulfill their obligations to meet domestic needs can be given sanctions. but also the revocation of his business license,” said Jokowi.
Jokowi also ordered the Ministry of Energy and Mineral Resources, BUMN, and PLN to find the best solution for the national interest.
“First, regarding the supply of coal, I have ordered the Ministry of Energy and Mineral Resources, the Ministry of SOEs and PLN to immediately find the best solution for the national interest. The priority is to fulfill domestic needs for PLN and domestic industries,” he said.
He said that private companies, state-owned enterprises and their subsidiaries engaged in mining, plantations, and other natural resource processing should prioritize domestic needs first before exporting.
“I need to remind that the government requires private companies, BUMN and their subsidiaries engaged in mining, plantations and other natural resource processing to provide domestic needs first, before exporting,” he said.
“This is a mandate from Article 33 paragraph 3 of the 1945 Constitution that the earth, water and natural resources contained therein are controlled by the state and used for the greatest prosperity of the people,” he explained.
This bluff turned out to be no joke, as evidenced by the announcement made by the President yesterday, Thursday (06/01/2022), regarding the revocation of 2,078 mineral and coal Mining Business Permits (IUP).
The President said that the revocation of the IUP was due to the fact that he had never submitted a work plan.
“Today, as many as 2,078 mining and coal mining companies’ permits have been revoked because we have never submitted a work plan, permits that have been given for years but have not been carried out and this has caused the use of natural resources to be taken hostage to improve people’s welfare,” said Jokowi, Thursday (06/01/2022). ).
Jokowi said the government will continue to improve natural resource management so that it is equitable, transparent and fair to correct injustice and natural damage.
“Forest mining permits as well as state land use continue to be evaluated thoroughly. Permits that are not executed, are not productive, are transferred to other parties and are not in accordance with their designation and our regulations will be revoked,” he said.
After the President’s announcement regarding the revocation of thousands of Minerba Mining Permits, finally in the afternoon, Thursday (06/01/2022), Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan also held a coordination meeting with a number of relevant ministries under him and also PT PLN (Persero) as a coal mining business actor.
Luhut said his party discussed proposed solutions for emergency and long-term conditions for this problem.
However, his party has not decided on the policies that will be carried out in the future because today’s meeting only discusses the formula and a number of proposals from the relevant stakeholders.
The plan is that today, Friday (07/01/2022), his party will hold another meeting and will immediately take a policy at that time.
“Tomorrow we will continue the meeting. We will divide the fulfillment into two now and later the permanent settlement. For now, no emergency problems have been passed. We have a few items that we want to solve, tomorrow the team will work. Then also at the same time our new formula propose, the team will study by tomorrow at 2 o’clock we have to decide,” he explained to reporters when met at his office, Thursday (06/01/2022).
As is known, the Ministry of Energy and Mineral Resources (ESDM) has adopted a policy to ban coal exports for the period 1 to 31 January 2022 for holders of Mining Business Permits (IUP) or IUPKs for the Production Operation stage, and IUPK as Continuation of Contract/Agreement Operations and PKP2B as a result of the crisis in coal supply for PLN power plants and private power developers (Independent Power Producer / IPP).
Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources (ESDM) Ridwan Djamaluddin said that this step must be taken and is temporary in order to maintain security and stability of electricity and the national economy.
(wia)
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