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Jakarta Post

PLN plans to acquire more coal mines

  • News Desk

    The Jakarta Post

Jakarta   /   Sun, January 13, 2019   /   01:39 pm
PLN plans to acquire more coal mines A bulk freighter carrying coal cruises through the Musi River in Palembang, South Sumatra, on Jan. 3. (Antara/Nova Wahyudi)

PLN is planning to ensure long-term supplies for its coal-fired power plants by acquiring two coal mining sites in Kalimantan and Sumatra during mid-year.

“Currently, we are still examining the two coal mines. Hopefully, the acquisition would be done by mid-year,” PLN president director Sofyan Basir said as quoted by

He declined to mention the names of the owners and the production capacity of the mines on both islands.

The acquisition of the mines is vital to the sole electricity off-taker in the country, which is struggling to ease its financial burdens amid rebounding coal prices, among other issues. In the long run, PLN will only need to calculate coal production costs as it will no longer be affected by uncertain global commodity prices.

This year, Sofyan said, PLN set a target to secure 100 million tons of coal, a slight increase from its target last year of 94 million tons.

He said the acquisition would help the company guarantee its coal supply. “By acquiring them, we hope at least 30 percent of our total coal supply would be sourced from our mines, while the rest would be from private miners,” Sofyan added.

The government seeks to generate 35 gigawatts this year as it aims to increase the electrification ratio to 99 percent in the archipelago. (das/dmr)