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Coal Companies Ensure Commitment to Fulfillment of Coal DMO

Sun 20 Mar 2022, 09:12 AM



The Indonesian Coal Mining Association (APBI) ensures that efforts to fulfill domestic coal are continuously carried out. "The members have been committed from the beginning to carry out the sales contract to PLN," said APBI Executive Director Hendra Sinadia to Kontan, Sunday (20/3). Hendra continued, based on previous information, the supply of coal to PLN was said to be in a safe level.

Previously, PLN President Director Darmawan Prasodjo asserted, according to the direction of the Minister of Energy and Mineral Resources and the Minister of SOEs, PLN has fixed the mechanism for supplying coal needs by entering into long-term contracts with monitoring obligations to fulfill domestic needs or domestic market obligations ( DMO ) which are monitored digitally and integrated. with a database system at the Ministry of Energy and Mineral Resources as a regulator in coal mining.

“The changes to the digital-based contract system that we manage now have anticipated the fluctuating conditions of coal prices in the international market, so that coal availability remains secure. The average generator stock is above 15 days of operation (HOP)," he said. Darmawan added that the government's policies and the support of the DPR through Commission VI and Commission VII which still set a coal DMO price of US$ 70 per metric ton (MT) also greatly helped PLN to secure coal supply in the midst of price spikes.

Systemically, PLN has made a paradigm shift in monitoring and controlling coal supply, which initially focused on monitoring the estimated time of arrival (ETA) unloading point to focusing on the loading point .

This monitoring step, continued Darmawan, was not only done physically in the field but also through the integration of a digital monitoring system between the PLN system and the system at the Directorate General of Coal Minerals (DG Minerba) of the Ministry of Energy and Mineral Resources. This system provides information on loading targets which is integrated with the system at the Directorate General of Mineral and Coal which records the loading realization from each supplier.

"We together with the Ministry of Energy and Mineral Resources carry out day to day enforcement to suppliers to ensure that each planned shipment can be loaded according to plan. If there is a loading failure , the integrated system between PLN and the Directorate General of Mineral and Coal will immediately lock so that it will not allow the supplier to export," said Dharmawan.

Darmawan added, PLN also continues to increase cooperation and collaboration with ship entrepreneurs through INSA (Indonesian National Shipowners Association). This step is carried out intensely to ensure the realization of coal supply including assignments from the Ministry of Energy and Mineral Resources can be carried out and delivered according to the required schedule.



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