Luhut Orders To Change Coal Procurement Scheme For PLN: They Will Buy It At The Market Price So It Won't Disturb The Market

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan said the government would change the coal purchase scheme for PT PLN (Persero) supplies.

In his statement, Luhut said that in the future PT PLN would buy coal according to the market price so that it would not interfere with market prices.

"Later, there will be a Public Service Agency (BLU) so that it does not interfere with the existing market mechanism," said Luhut when met at his office.

Luhut explained that in the future there will be no more coal purchase scheme at the mine site or Free on Board (FOB) but will be replaced with a Cost, Insurance and Freight (DIF) scheme.

"So in the future there will also be no purchases through traders. Everything must be directly purchased at the mining company," added Luhut.

Through this new scheme, the company will cover all costs including insurance costs. Not only that, with the formation of BLU, there will be a collection of fees from coal companies to cover the difference in market prices.

"Thus, there will be no more disrupted coal supply because the children's BLU pays to PLN and PLN will buy it at the market price," said Coordinating Minister Luhut.

Previously, on Monday 10 January 2022, Luhut had held a coordination meeting with a number of ministries and institutions to discuss coal supply for PLN and produced a number of decisions, one of which was the gradual opening of exports which would begin on Wednesday 12 January 2022.