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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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Thursday, 12 December 19
KOWEPO INVITING BIDS FOR 2.28 MILLION TONS OF MIN.4,400 NCV COAL
COALspot.com: South Korea’s Korea Western Power Co., Ltd. (KOWEPO) has issued an international tender for total 2,280,000 tons of (Sub) Bitum ...
Wednesday, 11 December 19
PANAMAX: THE MARKET REMAINED FIRM IN THE PACIFIC, WITH INCREASED ACTIVITY NOTED IN KEY AREAS, SUCH AS INDONESIA - ALLIED
Capesize – Positive momentum was resumed this past week, with earnings mak-ing some gains once again. This rising pattern was reflected in th ...
Tuesday, 10 December 19
PREPARATIONS INTENSIFY AS IMO 2020 GLOBAL SULPHUR CAP LOOMS - STANDARD CLUB
With less than a month to go for the impending IMO 2020 global sulphur cap, the club has started witnessing dispute cases relating to the measureme ...
Monday, 09 December 19
KOREA SOUTHERN POWER CO LTD IS INVITING OFFERS FOR MIN 3700 NCV COAL
COALspot.com: South Korea’s Korea East-West Power Co. Ltd has issued an international tender for 160,000 Tons steam coal.
Acco ...
Saturday, 07 December 19
CHINA'S BENCHMARK POWER COAL PRICE DROPS SLIGHTLY - XINHUA
China’s benchmark power coal price dropped slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge ...
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- New Zealand Coal & Carbon
- Anglo American - United Kingdom
- Directorate Of Revenue Intelligence - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
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- Riau Bara Harum - Indonesia
- Binh Thuan Hamico - Vietnam
- Mintek Dendrill Indonesia
- Toyota Tsusho Corporation, Japan
- Coalindo Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Eastern Energy - Thailand
- Minerals Council of Australia
- Thiess Contractors Indonesia
- Simpson Spence & Young - Indonesia
- Thai Mozambique Logistica
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Economic Council, Georgia
- Meralco Power Generation, Philippines
- The University of Queensland
- SMG Consultants - Indonesia
- Standard Chartered Bank - UAE
- Kideco Jaya Agung - Indonesia
- LBH Netherlands Bv - Netherlands
- Ind-Barath Power Infra Limited - India
- Bhushan Steel Limited - India
- McConnell Dowell - Australia
- Jorong Barutama Greston.PT - Indonesia
- OPG Power Generation Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- GVK Power & Infra Limited - India
- Uttam Galva Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Leighton Contractors Pty Ltd - Australia
- Energy Link Ltd, New Zealand
- Siam City Cement - Thailand
- Vedanta Resources Plc - India
- PNOC Exploration Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- San Jose City I Power Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- GAC Shipping (India) Pvt Ltd
- Singapore Mercantile Exchange
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- GMR Energy Limited - India
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Sojitz Corporation - Japan
- Electricity Generating Authority of Thailand
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- Cigading International Bulk Terminal - Indonesia
- Essar Steel Hazira Ltd - India
- Therma Luzon, Inc, Philippines
- Madhucon Powers Ltd - India
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- Antam Resourcindo - Indonesia
- Banpu Public Company Limited - Thailand
- Dalmia Cement Bharat India
- Karaikal Port Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Grasim Industreis Ltd - India
- Global Coal Blending Company Limited - Australia
- European Bulk Services B.V. - Netherlands
- Indogreen Group - Indonesia
- Cement Manufacturers Association - India
- Baramulti Group, Indonesia
- Aditya Birla Group - India
- Chamber of Mines of South Africa
- Videocon Industries ltd - India
- Kapuas Tunggal Persada - Indonesia
- Kumho Petrochemical, South Korea
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Makarim & Taira - Indonesia
- Indonesian Coal Mining Association
- PowerSource Philippines DevCo
- TNB Fuel Sdn Bhd - Malaysia
- Mjunction Services Limited - India
- Metalloyd Limited - United Kingdom
- SN Aboitiz Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Mercator Lines Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- MS Steel International - UAE
- Bangladesh Power Developement Board
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- CNBM International Corporation - China
- ASAPP Information Group - India
- Latin American Coal - Colombia
- VISA Power Limited - India
- Manunggal Multi Energi - Indonesia
- Parry Sugars Refinery, India
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Eastern Coal Council - USA
- Bhatia International Limited - India
- London Commodity Brokers - England
- Bukit Baiduri Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Attock Cement Pakistan Limited
- Karbindo Abesyapradhi - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bukit Makmur.PT - Indonesia
- Borneo Indobara - Indonesia
- Kepco SPC Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Development Corp, Philippines
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- Carbofer General Trading SA - India
- Mercuria Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Kartika Selabumi Mining - Indonesia
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Edison Trading Spa - Italy
- Altura Mining Limited, Indonesia
- India Bulls Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Power Finance Corporation Ltd., India
- IHS Mccloskey Coal Group - USA
- International Coal Ventures Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Renaissance Capital - South Africa
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- Georgia Ports Authority, United States
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Global Green Power PLC Corporation, Philippines
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- Parliament of New Zealand
- Port Waratah Coal Services - Australia
- Romanian Commodities Exchange
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Sarangani Energy Corporation, Philippines
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Africa Commodities Group - South Africa
- Tamil Nadu electricity Board
- Australian Coal Association
- The Treasury - Australian Government
- Barasentosa Lestari - Indonesia
- Larsen & Toubro Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement PLC, Thailand
- Krishnapatnam Port Company Ltd. - India
- Salva Resources Pvt Ltd - India
- Ambuja Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- Chettinad Cement Corporation Ltd - India
- Indian Oil Corporation Limited
- Iligan Light & Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- Medco Energi Mining Internasional
- Bayan Resources Tbk. - Indonesia
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Vijayanagar Sugar Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Planning Commission, India
- Neyveli Lignite Corporation Ltd, - India
- Independent Power Producers Association of India
- SMC Global Power, Philippines
- White Energy Company Limited
- TeaM Sual Corporation - Philippines
- Formosa Plastics Group - Taiwan
- Alfred C Toepfer International GmbH - Germany
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- CIMB Investment Bank - Malaysia
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Finance - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Sakthi Sugars Limited - India
- Pendopo Energi Batubara - Indonesia
- Coastal Gujarat Power Limited - India
- Samtan Co., Ltd - South Korea
- Price Waterhouse Coopers - Russia
- Orica Australia Pty. Ltd.
- Maharashtra Electricity Regulatory Commission - India
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