Coal Price Surges, Suppliers Must Consider Domestic Supplies, Association Says

TEMPO.CO, Jakarta - Chairman of the Indonesian Coal and Energy Supplier Association (ASPEBINDO) Anggawira, said that coal suppliers must pay attention to supplies for domestic needs, although coal price continues to rise in the international market.

"Price of coal currently sits on the highest price in a decade, this is certainly very lucrative for us coal suppliers, but it can have a bad effect if we did not secure domestic needs," Anggawira said in a written statement on Saturday, October 9, 2021.

Anggawira observed that coal price appears to be unstoppable. In the trade at the ICE market in Newcastle, Australia, on Tuesday, October 5, 2021, coal trade price was closed at a level of USD 280 per ton. The price was 12.45 percent higher compared to the previous day and set a record high compared to 2008.

Based on data from Minerba One Data Indonesia (MODI) of the Ministry of Energy and Mineral Resources, the realization of state revenue from the mineral and coal mining sector until October 6, 2021, is recorded to exceed IDR 49.84 trillion.

This total revenue even exceeded the annual target of IDR 39.1 trillion. This means that the realization of state revenue from the mineral and coal sector had reached 127.45 percent of the target set for 2021.

In order to guarantee domestic supplies, Anggawira encourage the Energy and Mineral Resources Ministry to collaborate with ASPEBINDO

"It can't be denied that coal suppliers received profits with the increase of coal price, however, if we only think about profits, coal businesses can just sell to outside of Indonesia. This needs to be the attention of coal suppliers and the Ministry so that domestic needs for PLN supplies [can be secured]," Anggawira said.

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