Indonesia Power, PTBA agree to lower July-Dec. price

By Edgar Subroto

PT Indonesia Power (IP), a power business unit of state-owned utility PT PLN has agreed to pay an amount of Rp 809,000 per ton of coal supplied by state-owned coal miner PT Bukit Asam (Persero) Tbk. (PTBA) for the period from July to December.

For January to May 2012 period, IP paid Rp825,000 for each ton of PTBA's coal. The revised deal had been signed in September.

At present, both parties are still negotiating price and volume for 2013 period. This year, PTBA will supply 5.75 million tons of coal, lower compared to 2011 supply of 6.1 million tons.

According to an industrial source, the negotiation is still going tough, especially on the price "But the volume will be easier to be settled. The figures will likely not be far from previous years',? the source added.

By Er Audy Zandri