Indonesian President Signs New Rule on Domestic Coal Pricing
President Joko Widodo
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Reuters reported that Indonesian President Joko Widodo has signed a government regulation authorizing the energy and mineral resources minister to set the price of coal for the domestic market. Coal and Minerals Director-General Bambang Gatot told parliament “Further details on the pricing plan will be outlined in a ministerial decree expected to be announced soon.”
Indonesia plans to keep electricity tariffs and fuel prices unchanged this year and the next by hiking subsidies, government officials said earlier this week.
Perusahaan Listrik Negara Chief Executive Mr. Sofyan Basir urged Widodo last week to fix domestic coal prices at between USD 60 and USD 70 per tonne for two years.
Indonesian domestic media reported on Friday that the energy ministry has agreed to set prices at USD 70 per tonne.
Indonesian Coal Benchmark Price was set at USD 101.86 per tonne for March, its highest since May 2012.
The government has been working on plans to regulate domestic coal prices since late 2017, and the discussions have impacted some coal miners’ share prices.
Source: Steel Guru
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