ESDM Minister Says Coal Prices Will Still Be High In 2023

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif estimates that the high price of coal will continue until next year.

He said the geopolitical conflict between Russia and Ukraine that had not subsided was the cause of the high price of black gold.

"In 2023, it is estimated that coal price projections will remain high because there is still no certainty about the conflict," he said at a working meeting with Commission VII DPR RI in Jakarta, Tuesday, August 9.

Meanwhile, Indonesia's reference coal price (HBA) was US$319 per tonne in August.

Not only the geopolitical conflict, Arifin also said that the high price of coal was also caused by the increase in demand from India and China to fulfill their coal, as well as the impact of the European Union's decision to gradually reduce the use of coal due to the high price of gas supplied by Russia due to the conflict. the geopolitics.

To that end, the Indonesian government has set up a domestic market obligation (DMO) for coal PKP2B, IUP, and IUPK holders to maintain domestic coal supply.

The regulation is contained in Law Number 3 of 2020 which mandates a national policy to prioritize minerals and coal for domestic interests.

Furthermore, Government Regulation Number 79 of 2014 concerning National Energy Policy which mandates priority of coal as an energy source and guarantee of coal supply for domestic needs. domestic coal.

Export activities can be carried out after domestic needs are met.

Other rules are also contained in the Minister of Energy and Mineral Resources Regulation Number 7 of 2020 which mandates that IUP and IUPK holders must prioritize the fulfillment of domestic mineral and coal needs and for IUP and IUPK holders who violate will be subject to administrative sanctions.

In addition, there is also a Ministerial Decree Number 139 of 2021 which requires IUP, IPUK, and PKP2B to fulfill a DMO of 25 percent of the approved production plan and the provision of a coal selling price for general electricity of 70 US dollars per tonne, as well as the regulation of export ban sanctions. fines and imposition of compensation funds.