Govt Ensures Coal Supply Chain to Power Plants

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 039.Pers/04/SJI/2021

Date: 27 January 2021

Govt Ensures Coal Supply Chain to Power Plants

The Indonesian Ministry of Energy and Mineral Resources (EMR) has ensured that coal supply chain to coal-fired power plants (PLTU) of PT PLN (Persero) and Independent Power Producers (IPP) is safe despite extreme weather.

"We absolutely ensure that there is going to be no serious disruption, including esuring that the supply chain is safe," said Director General of Electricity, Rida Mulyana, in a virtual press conference on Wednesday (27/1).

The Indonesian Government has made every effort to secure the primary energy supply chain, such as making sure the reliability of power stations, maximizing the production of Independent Power Producer (IPP) power stations, and optimizing coal stock by regulating electricity production based on coal supply. Additionally, the government will maximize gas use at PT PLN (Persero) power plants.

"If supply from PLTU lowers because coal capacity decreases, we will maximize gas use. If gas is not enough, we will have to use oils. That will be the last option," said Rida.

Other efforts include switching from barges to vessels for coal delivery and rescheduling plant maintenance.

Rida said that his office had even warned PLN and IPP to anticipate extreme weather. "Our goal is to make sure there is no blackout potential. We want to guarantee that electricity is available anywhere. Last October, we warned PLN and IPP to secure the supply chain," Rida said.

Director General of Mineral and Coal, Ridwan Djamaluddin, confirmed that all coal miners had expressed their commitment to meeting the domestic coal needs obligation.

"Coal supply to PLN must not be lacking. All coal suppliers have given their commitment to meet the obligation; there are 54 companies in total. Following the set policy, the government prioritizes coal for domestic needs," Ridwan concluded.

The coal Domestic Market Obligation (DMO) mechanism requires coal miners to annually allocate 25% of their production to the domestic market, especially for electricity generation. This year's production target is 550 million metric tons of coal, while DMO 137 million metric tons and demand for electricity generation is projected at 113 million metric tons. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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