Coal Prices Soar, Suppliers Are Asked To Secure Domestic Supply

ILLUSTRATION/BETWEEN

JAKARTA - The price of coal is still skyrocketing. Even the price is 'at home' above the level of 200 dollars per ton.

Chairman of the Association of Indonesian Coal and Energy Suppliers (ASPEBINDO), Anggawira, asked suppliers to pay attention to supply for domestic needs, amidst the continued soaring price of coal in world trade.

Anggawira sees the recent price of coal as unstoppable. In trading on the ICE market in Newcastle, Australia, on Tuesday 5 October 2021, the price of coal closed at the level of 280 US dollars per tonne. The price jumped 12.45 percent from the previous day, the highest on record since at least 2008.

"The price of coal is currently at the highest price in a decade, this is certainly very tempting for us coal suppliers, but this can have a negative impact if we do not secure the needs of our own country," he said in a written statement, quoted on Sunday, 10 October.

Based on Minerba One Data Indonesia (MODI) data from the Ministry of Energy and Mineral Resources, the realization of state revenues from the mineral and coal mining sector as of Wednesday, October 6 was recorded to have reached Rp49.84 trillion.

This amount of revenue has even exceeded the planned full year target of IDR 39.1 trillion. This means that the realization of state revenues from the mineral and coal mining sector has reached 127.45 percent of this year's target.

To ensure domestic supply, Anggawira suggested that the Ministry of Energy and Mineral Resources could collaborate with ASPEBINDO considering that the total state revenue from the mineral and coal sector currently reaches around 75-80 percent from coal alone.

"It does not deny that coal suppliers benefit from rising coal prices. However, if you only think about profits, coal entrepreneurs can sell outside Indonesia. PLN supply needs," he said.

According to Anggawira, this momentum must be utilized properly for coal supplying entrepreneurs and also the government in order to maximize state revenues and also do not let PLN suffer from coal problems.