PLN Will Buy Coal at Market Price, Luhut Prepares BLU Scheme

Coal loading and unloading activities at the KCN Marunda pier, Jakarta, Wednesday, January 5, 2022. TEMPO/Tony Hartawan

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the government was preparing a Public Service Agency forcoallevies.

The move is in line with the government’s move to fix the coal purchase scheme for the power plant PT Perusahaan Listrik Negara (Persero) akaPLN.

“It is being prepared now, in one or two months it will be completed,” saidLuhutin his office, Monday, January 10, 2022.

Previously, Luhut said the government would change the coal procurement scheme for the State Electricity Company (Persero) alias PLN.Luhut said PLN would later buy coal for the supply of steam power plants according to market prices.

“Later, a BLU (Public Service Agency) will beformed, later the BLU will pay to PLN. So PLN buys atmarket price, there is no longer a disrupted market mechanism,” said Luhut.

Luhut said that later coal companies would have an obligation to pay a levy to BLU which would later be allocated as compensation for PLN due to the price difference between the benchmark price, for example US$ 70 per tonne, and the market price.So that PLN will be able to buy at market prices.

“So if the price difference is based on US$ 70 per tonne, it will be seen how many dollars the difference will go to BLU from coal companies. So all coal companies have the same obligation for the subsidy,” said Luhut.The BLU scheme is currently being prepared and is targeted to be completed in the next one to two months.

In addition, Luhut said that he would fix a lot of issues regarding the supply of coal to state electricity companies.Starting from purchases that must be from coal mining companies and not traders, to purchase schemes that are no longerfree on boardor FOB and must beCost, Insurance and Freightor CIF.

“Then later the ship, PT BAG, will be spin-off, so let it be later because CIF doesn’t need PLN anymore,” he said.