PLN Centralised Coals Purchasing Contracts

PT Perusahaan Listrik Negara (Persero) implements the centralised coals purchasing contracts to sustain the electric supply to the public. Up until recently, the coals purchasing contracts, which are channelled to PLN power plants, were handled by its subsidiary, PT PLN Batubara.

In the press release quoted Thursday (10/2), Hertanto Wibowo, Director of Primary Energy of PLN, confirmed that reassigning coals purchasing contracts to be consolidated and centralised in PLN is intended to maintain the effectiveness of coals management. “PLN will establish direct contracts with coal manufacturers to ensure the reliability of coal supply,” he added.

According to Wibowo, the contract reassignment will be accompanied by the extension of contract period, especially on the previously short-term contracts. In addition, PLN will no longer sign the purchasing contracts with the traders. It will directly face the coal mining companies.

Furthermore, PLN will shorten the operation and transportation billing period to 14 days from 90-120 days once the contracts reassignment paper arrives at PLN’s hands. The same thing also applies to the purveying of barges and unload-and-load facilities, as well as payments to coal mining companies.

As mentioned several times before, the government was known to reinforce a coal export restriction policy in January 2022 in order to meet the domestic market obligation (DMO) of coal of 30%. (LK/ZH)

Source: https://www.idnfinancials.com/news/42142/pln-centralised-coals-purchasing-contracts