Special Coal Prices Not Applicable To Smelters, Director General Of Minerals And Coal Gives An Explanation

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has set the selling price of coal for the domestic industry at 90 US dollars per metric ton. This change is contained in the Decree of the Minister of Energy and Mineral Resources (Kepmen) Number 58.K/HK.02/MEM.B/2022 concerning the Selling Price of Coal for Fulfilling Domestic Raw Material/Industrial Fuel Needs. The regulation revokes the Decree of the Minister of Energy and Mineral Resources concerning the Selling Price of Coal to Fulfill the Need for Raw Materials/Fuels for the Domestic Cement and Fertilizer Industry.

The decision issued on March 23, 2022 does not apply to the metal mineral processing or refining industry (smelters).

Responding to this, the Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, explained that this exception was applied because in principle, smelters are categorized as not directly related to the livelihoods of many people.

"We must not be considered subsidizing industries that are not in line with the spirit of the free market that is being developed throughout the world," he said while giving a speech at the Socialization of the Minister of Energy and Mineral Resources Number 58 of 2022, Wednesday, March 30.

He added that this implementation was not meant to be bad for the processing industry or smelters, but rather to protect the nation's honor internationally.

Agreeing with Ridwan's statement, the Director of Coal Development and Concession at the Ministry of Energy and Mineral Resources, Lana Saria, added that this decision was taken because the products produced from the smelter industry will be exported abroad and do not meet domestic needs.

"What is included in this Decree is the type of industry that is needed in the national industry or for the livelihood of many people and is indeed used in large numbers for the national interest," Lana added.

Furthermore, in her presentation, Lana explained, this decision also stipulates that if the need for coal for domestic industrial raw materials/fuel is not met, the director general of minerals and coal on behalf of the minister can appoint a mining business entity to meet the coal needs.

The mining business entities include holders of a mining business permit (IUP) for the stage of coal production operations (OP), a special IUP for the stage of coal mining operations, a work agreement for coal mining concessions for the OP activity stage, a special mining business permit as a continuation of the contract/agreement operation. , or coal transportation and sales permits.