Although Coal Prices Rise Due To International Conflict, PLN Brings Good News For Ensure Safe Supply

Illustration. (Photo: Doc. Antara)

JAKARTA - The high price of coal due to international political turmoil was feared would again disrupt the supply of coal for the needs of the power plants operated by PLN.

In the midst of price fluctuations in the international market, PLN ensures the security of coal supply for the needs of PLN's power plants in the country. This happened after PLN changed the mechanism of the coal monitoring system and transformed it into a digital one.

Minister of State-Owned Enterprises (BUMN), Erick Thohir has asked PLN to carry out a transformation in primary energy governance.

"The need for coal for the domestic market is safe in the midst of a fluctuating international situation plus the Russia-Ukraine war. PLN has changed the coal procurement system digitally and coordinated with us at the Ministry of SOEs and the Ministry of Energy and Mineral Resources, so that the procurement of coal for electricity supply to people are still awake," said Erick.

PLN President Director Darmawan Prasodjo asserted, according to the direction of the Minister of Energy and Mineral Resources and the Minister of SOEs, the mechanism for supplying coal needs has been addressed by PLN by entering into long-term contracts by monitoring the obligation to fulfill domestic needs (Domestic Market Obligation / DMO) which is monitored digitally and integrated with the system. database at the Ministry of Energy and Mineral Resources as a regulator in coal mining.

“The changes to the digital-based contract system that we are managing now have anticipated the fluctuating conditions of coal prices in the international market, so that coal availability remains secure. The average generator stock is above 15 days of operation (HOP)," he said.

Darmawan added that the government's policies and the support of the DPR through Commission VI and Commission VII which still set the DMO price of coal at 70 per metric ton (MT) also greatly helped PLN to secure coal supply in the midst of price spikes.

Systemically, PLN has made a paradigm shift in monitoring and controlling coal supply, which initially focused on monitoring at the point of unloading (estimated time of arrival/ETA) to focusing on the point of loading/loading.

This monitoring step, continued Darmawan, was not only done physically in the field but also through the integration of a digital monitoring system between the PLN system and the system at the Directorate General of Coal Minerals (DG Minerba) of the Ministry of Energy and Mineral Resources. This system provides information on loading targets which is integrated with the system at the Directorate General of Mineral and Coal which records the loading realization from each supplier.

"We together with the Ministry of Energy and Mineral Resources carry out day-to-day enforcement to suppliers to ensure that each planned shipment can be loaded according to plan. If there is a loading failure, the integrated system between PLN and the Directorate General of Mineral and Coal will immediately lock so that it will not allow the supplier to export, " he said.

Equally important, PLN also continues to increase cooperation and collaboration with ship entrepreneurs through INSA (Indonesian National Shipowners Association). This step is carried out intensely to ensure that the realization of coal supply, including assignments from the Ministry of Energy and Mineral Resources, can be carried out and delivered according to the required schedule.