Supporting The Establishment Of A Special Coal Entity, ASPEBINDO: It Can Excite The Domestic Market

General Chairman of ASPEBINDO Anggawira. (Photo: Doc. ASPEBINDO)

JAKARTA - The Indonesian Association of Energy, Mineral and Coal Suppliers (ASPEBINDO) Indonesia supports the government's move to form a special entity for coal.

Chairman of ASPEBINDO, Anggawira said that the step to create a coal entity is considered better than the current scheme which is less attractive to miners if world coal prices rise. Coal suppliers can sell their coal at market prices so that the domestic market is attractive again.

"The formation of this coal entity is very good to encourage coal suppliers to market their products domestically," said Anggawira in a statement received by VOI, Tuesday, April 19.

Anggawira admits that with the current US$70 DMO mechanism, the domestic market is less attractive to coal entrepreneurs with a high price difference. So outside of the DMO's obligations, entrepreneurs prefer to sell their products to foreign markets.

Therefore, he hopes that the formation of a coal entity can stimulate the domestic coal market so that the government will have no trouble finding coal for energy needs.

However, Anggawira warned that mining companies have various business scales so that special treatment is needed for each business scale.

"If we look at coal suppliers, it's not just big companies, there are many small and medium-sized companies that actually grow big to maintain coal supply. For this reason, KADIN Indonesia needs to attract all registered coal associations, both large and small scale, to get involved in this entity. ," said Anggawira.

Just so you know beforehand, the Minister of Energy and Mineral Resources, Arifin Tasrif, stated that the formation of the Coal Special Entity would involve the Coal Mining Association. In the future, it will be the task of the Indonesian Chamber of Commerce and Industry (Kadin) to be able to gather all members of coal companies into this Special Coal Entity.

According to Anggawira, the government's move to cooperate with coal associations should be appreciated. This is because associations have an important role in building communication between the government and entrepreneurs.

"We at ASPEBINDO appreciate the government's steps to attract associations in this entity, of course with the participation of government and entrepreneur communication associations it will be smoother and this entity can carry out its duties optimally," said Anggawira.

Previously, the Minister of Energy and Mineral Resources, Arifin Tasrif, announced the formation of this entity which aims to collect coal fees from coal sales at a market price adjusted to the difference in the latest coal benchmark price of 70 US dollars per tonne.

The establishment of this entity is considered good to keep national energy needs affordable.