Adaro prioritizes domestic market

By Tri Subhki R.

IDX-listed coal mining and energy firm PT Adaro Energy Tbk prioritizes coal sales to domestic market to help create captive market and minimize the impact of volatile global market.

"Adaro prioritizes domestic coal sales and has always fulfilled its Domestic Market Obligation every year," Adaro's Head of Corporate Communication Febriati Nadira said to Petromindo.com recently.

In 2015, Adaro's domestic coal sales volume accounted for 22 percent of the total sales volume of 53.11 million tons, or higher than coal sales to China at 16 percent and India at 13 percent. Production last year fell 8 percent to 51.46 million tons from the previous year level.

Most of Adaro's domestic customers are coal fired power plants, including state owned power utility company PT PLN (Persero).

Adaro keeps developing its power business as it already operated 2x30 MW mine mouth power plant in South Kalimantan. The company has also signed power purchase agreements with PLN for the 2x1,000 MW coal-fired power plant in Batang, Central Java, (PT Bhimasena Power Indonesia) and 2x100 MW (PT Tanjung Power Indonesia) in South Kalimantan.

Editing by Reiner Simanjuntak