medcom.id, Jakarta: The Ministry of Energy and Mineral Resources (ESDM) stated they will not subsidise the coal industry to fulfill the requirements of coal to fuel the Steam Power Plant (PLTU).
There are other measures conducted by the government to guarantee the supply for PLTU, which is by crafting a new regulation to facilitate the coal business owners.
Minister of ESDM, Sudirman Said mentioned that currently the government does not require the subsidy of coal, as he thinks the regulation related with the facilitation of the coal business owners is more urgent, in order to continue the exploration of coal mining.
"Coal was discussed earlier. We don't have to subsidize, as the need is on the regulation and facilitation of the coal business," said Sudirman following a top-rank meeting of ESDM Ministry at the office of the Directorate General of Electricity in Jakarta, Monday (3/14/2016).
Sudirman continued that the regulation should also discuss the arrangement of appropriate coal prices to be bought by the electricity company. It is conducted so both parties, the business owners and electric company - in this case PLN (State-Owned Electric Company) - receive justice.
"To meet the price that we call 'balanced'. And the discussion is started," he said.
The former Director of PT Pindad stated that the coal price issue will be handed over to the existing market mechanism. The government only regulates the margin limits.
"This is the unformed market mechanism. If we push a certain price, the margin will be enough. And also electricity, the most important think is the calculation fits," he mentioned.
Previously, the national electricity program of 35,000 Megawatts (mw) established by the government is facing failures as the supply of coal as one of the sources of generating power is lacking.
Chairman of the Indonesia Coal Mining Association (APBI-ICMA), Pandu P. Sjahrir stated that based on the survey conducted by APBI-ICMA and PWC, the coal reserves will not be sufficient in fulfilling the electricity program.
Plus, the local coal companies will not be capable in conducting coal mining exploration due to the minimum source of funds, as well as the declining commodity price of coal - preventing the businesspeople from conducting more explorations.
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