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Ministry reshuffles PLN leadership, mulls closing coal arm
The decision came a few days after the government banned coal exports to prevent a coal shortage for PLN.
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State-Owned Enterprises (SOEs) Minister Erick Thohir gives a statement on a reshuffle within state-owned electricity company PLN on Jan. 6, 2022. (SOEs Ministry/Permana Aji)
T
he State-Owned Enterprises (SOEs) Ministry has decided to replace one director and overhaul a coal subsidiary of PLN, following the state-owned electricity company's failure to secure coal supplies for domestic electricity needs.
The SOEs Ministry decided on Thursday to appoint Hartanto Wibowo, who was previously PLN acting executive vice president of risk management, as the new PLN primary energy director, replacing Rudy Hendra Prastowo.
SOEs Minister Erick Thohir told reporters that the ministry had warned PLN about coal supply disruption since early 2021 amid decreasing domestic output and delivery delays.
“We have discussed this since January 2021. How could this happen again? Therefore, I decided to take firm action, replacing one of PLN’s directors,” he said.
The replacement occurred a few days after the government started banning coal exports due to a shortage in PLN's coal supplies, which risked causing widespread blackouts, said the Energy and Mineral Resources Ministry in a statement on Jan. 1.
Read also: Jokowi digs in heels on coal export ban
The government blamed the shortage on coal producers that did not comply with Domestic Market Obligation (DMO) rules, which mandate that a quarter of each producer's output be set aside for domestic needs, with prices capped at US$70 per ton.
