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Thursday, 02 January 20
DMO 2020 PRICE SET FOR ELECTRICITY SECTOR - IAN WOLLFF
 On the 26th December 2019, the Minister of Energy and Mineral Resources (ESDM) issued the decree No. 261.K/30.MEM/2019 about the States needs for coal in 2020 [Domestic Market Obligation = DMO] that is effective from the 1st January 2020. It is good that the decree was issued prior to its application, and the socialization of the decree is much anticipated.
The first three stipulations simply set the DMO for coal producers at a minimum of 25% of their sales. If this commitment is not met, then the producers are “obliged to pay compensation” for the shortfall amount of DMO sales. Note that the nature of such compensation is not mentioned in this decree.
The remainder of the decree specifically addresses coal sold “for the supply of electricity for public use..” The DMO sales for the cement and other industries are not mentioned, and presumably this decrees price setting formula for the electricity industry may not apply to other DMO coal uses.
The decree sets the coal selling price to the domestic electricity market, based upon a reference coal quality, and at the Free On Board (FOB) sales point. It would appear the business entity providing electricity is now mandatory to buy coal FOB and be responsible for coal transport, and to prioritize long term contracts. Coal producers that do not meet their DMO commitments related to the domestic electric market will be subject to sanctions in the form of reducing quota for the following years approved production. There seems to be no mention on the differentiation of 25% overall DMO and the proportion to be committed to the electric industry.
The Decree’s attachment sets out the determination of the selling price for the supply of electricity for public interest. There is separate formula for when the coal reference price is equal or more than USD 70/ton FOB, and for when the coal reference price is less than USD 70/ton FOB. The formula considers variations in coal quality and provides a table of 77 Indonesian coal quality / brands. There is a third consideration in the calculation of coal sales price to the electricity supply for public interest related to Spot Sales. It would seem the formulae do not consider coking properties.
Ian Wollff
Principal Geologist. Independent Consultant
Originally Published on Linkedin on 1 January 2020
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Friday, 06 September 24
REBOUND IN OIL DEMAND COULD LIFT MARKET IN LATTER HALF OF 2024 - BIMCO
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Friday, 06 September 24
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Wednesday, 28 August 24
SEABORNE COAL IMPORTS INTO INDIA INCREASED BY +9.9% Y-O-Y TO 146.6 MLN T - BANCHERO COSTA
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EXERCISE CAUTION WITH AMMONIA SWITCH - BALTIC EXCHANGE
A new study from the Massachusetts Institute of Technology (MIT) has thrown a spanner into the plan to transition ships from diesel fuel to ammonia ...
Friday, 02 August 24
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The recent surge in natural gas and coal prices has been so swift that the main benchmarks were roughly three times higher in 2022Q2 compared to a ...
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- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Indonesian Coal Mining Association
- Directorate Of Revenue Intelligence - India
- Star Paper Mills Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Goldman Sachs - Singapore
- Ministry of Finance - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Videocon Industries ltd - India
- Eastern Coal Council - USA
- Jaiprakash Power Ventures ltd
- Barasentosa Lestari - Indonesia
- Georgia Ports Authority, United States
- AsiaOL BioFuels Corp., Philippines
- The Treasury - Australian Government
- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Tamil Nadu electricity Board
- Agrawal Coal Company - India
- Savvy Resources Ltd - HongKong
- Borneo Indobara - Indonesia
- Romanian Commodities Exchange
- Port Waratah Coal Services - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Electricity Authority, New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Deloitte Consulting - India
- Renaissance Capital - South Africa
- Edison Trading Spa - Italy
- Carbofer General Trading SA - India
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Aditya Birla Group - India
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Gujarat Sidhee Cement - India
- Krishnapatnam Port Company Ltd. - India
- The University of Queensland
- Vedanta Resources Plc - India
- CIMB Investment Bank - Malaysia
- Madhucon Powers Ltd - India
- Bayan Resources Tbk. - Indonesia
- Wood Mackenzie - Singapore
- Bukit Baiduri Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Dalmia Cement Bharat India
- Petron Corporation, Philippines
- Mjunction Services Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Antam Resourcindo - Indonesia
- Planning Commission, India
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- Sojitz Corporation - Japan
- Larsen & Toubro Limited - India
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Aboitiz Power Corporation - Philippines
- Minerals Council of Australia
- Binh Thuan Hamico - Vietnam
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Holcim Trading Pte Ltd - Singapore
- Kideco Jaya Agung - Indonesia
- Semirara Mining Corp, Philippines
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Uttam Galva Steels Limited - India
- Thiess Contractors Indonesia
- Orica Australia Pty. Ltd.
- Bangladesh Power Developement Board
- India Bulls Power Limited - India
- Latin American Coal - Colombia
- Banpu Public Company Limited - Thailand
- Altura Mining Limited, Indonesia
- Baramulti Group, Indonesia
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Ind-Barath Power Infra Limited - India
- CNBM International Corporation - China
- Lanco Infratech Ltd - India
- Global Coal Blending Company Limited - Australia
- Metalloyd Limited - United Kingdom
- Timah Investasi Mineral - Indoneisa
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Samtan Co., Ltd - South Korea
- Kaltim Prima Coal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- Therma Luzon, Inc, Philippines
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- PTC India Limited - India
- PowerSource Philippines DevCo
- Ministry of Mines - Canada
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Singapore Mercantile Exchange
- Indo Tambangraya Megah - Indonesia
- Indika Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Jindal Steel & Power Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- TeaM Sual Corporation - Philippines
- Sical Logistics Limited - India
- Sakthi Sugars Limited - India
- Wilmar Investment Holdings
- Oldendorff Carriers - Singapore
- South Luzon Thermal Energy Corporation
- Kapuas Tunggal Persada - Indonesia
- Makarim & Taira - Indonesia
- Parliament of New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Attock Cement Pakistan Limited
- Trasteel International SA, Italy
- Heidelberg Cement - Germany
- Karaikal Port Pvt Ltd - India
- SMG Consultants - Indonesia
- Global Business Power Corporation, Philippines
- Central Java Power - Indonesia
- European Bulk Services B.V. - Netherlands
- Manunggal Multi Energi - Indonesia
- Simpson Spence & Young - Indonesia
- Salva Resources Pvt Ltd - India
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- Merrill Lynch Commodities Europe
- Asmin Koalindo Tuhup - Indonesia
- McConnell Dowell - Australia
- Siam City Cement PLC, Thailand
- VISA Power Limited - India
- Sarangani Energy Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- Grasim Industreis Ltd - India
- Malabar Cements Ltd - India
- MS Steel International - UAE
- Chamber of Mines of South Africa
- Marubeni Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Australian Coal Association
- Iligan Light & Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Rashtriya Ispat Nigam Limited - India
- Cement Manufacturers Association - India
- Rio Tinto Coal - Australia
- Siam City Cement - Thailand
- Electricity Generating Authority of Thailand
- Indian Oil Corporation Limited
- Price Waterhouse Coopers - Russia
- Bulk Trading Sa - Switzerland
- Toyota Tsusho Corporation, Japan
- Commonwealth Bank - Australia
- Ambuja Cements Ltd - India
- Bhushan Steel Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Tata Chemicals Ltd - India
- Gujarat Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- OPG Power Generation Pvt Ltd - India
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Power Finance Corporation Ltd., India
- PetroVietnam Power Coal Import and Supply Company
- White Energy Company Limited
- Riau Bara Harum - Indonesia
- Sinarmas Energy and Mining - Indonesia
- New Zealand Coal & Carbon
- Coal and Oil Company - UAE
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Coalindo Energy - Indonesia
- Energy Development Corp, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Essar Steel Hazira Ltd - India
- Posco Energy - South Korea
- Sindya Power Generating Company Private Ltd
- SMC Global Power, Philippines
- Africa Commodities Group - South Africa
- Cigading International Bulk Terminal - Indonesia
- Kumho Petrochemical, South Korea
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