Criticizing Naughty Coal Entrepreneurs, Minister Of Energy And Mineral Resources Arifin Tasrif: If They Were Disciplined It Wouldn't Be Like This

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. Ministry of Energy and Mineral Resources)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif quipped a number of rogue businessmen who were not disciplined in carrying out domestic market obligations (DMO) resulting in a shortage of coal supply for PLN.

"So actually, if this supplier is disciplined in fulfilling its commitments, we don't need to experience a crisis," said Arifin at the Press Conference on ESDM Performance Exposure in Jakarta, January 12.

Arifin said that Indonesia's coal production capacity was sufficient to meet national needs, so something like this should not have happened. According to him, indications of the coal crisis have actually started since August 2021 and can be handled well.

"But in practice, the trend is not getting better, it's even more worrying," said Arifin.

Arifin continued, 40 percent of Indonesia's total coal production could meet the needs of PLN's power plants if coal entrepreneurs were disciplined to implement the DMO policy.

He emphasized that the annual production is in the range of 600 million tons per year, so 40 percent of the production that can be absorbed by PLN is equivalent to 240 million tons.

"If you look at it, our use is only a quarter of the domestic coal production," he added.

Arifin emphasized that in the future there will be strict sanctions for entrepreneurs who do not obey and are disciplined.

"In the future, we really have to perfect the weaknesses that we have encountered so that this will not happen again," said Arifin.