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View all search resultsPrivate power producers raise alarm over coal supply squeeze
The coal price cap for power plants is set lower than that for cement factories and mineral smelters, leaving them with the lowest priority among suppliers.
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The site of PLTU Cirebon 660 MW, a coal-fired power plant that has 660 megawatts (MW) capacity (Courtesy of/www.cirebonpower.co.id)
T
he Indonesian Private Electricity Producers Association (APLSI) has urged the government to increase the dwindling coal supply for power generation amid low regulated coal prices under the domestic market obligation (DMO) policy and concerns over the planned coal production cut this year.
According to the association, coal stockpile at coal-fired power plants (PLTU) in Indonesia have fallen to an average of 10 operating days, well below the 25-day benchmark considered ideal.
To restore stockpiles to the ideal level, the association has urged the Energy and Mineral Resources Ministry to prioritize coal supply allocations for power plants.
The association attributed the shrinking coal supply to uncertainties around the approval of the 2026 annual work plan (RKAB) for coal mining, which includes a plan to reduce coal production for this year.
Joseph Pangalila, member of APLSI’s board of supervisors, said that the coal supply crisis for PLTU had persisted since last year due to low DMO price for coal supplied to power plants, which is set by the government and has stagnated since 2018.
“The DMO price for power plants is set at US$70 per tonne [based on 6,322 kcal/kg gross as received coal], compared with $90 per tonne for cement factories, while smelters pay market prices. As a result, power plants get the last priority from suppliers,” he said on Thursday, as quoted by Bisnis.
Read also: Miners call for faster quota approvals amid rule shift
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