Minister asks coal producers to lower price for PLN

Energy and Mineral Resources Minister Darwin Zahedy Saleh is asking coal suppliers to state-owned electricity company PT Perusahaan Listrik Negara (PLN) to abide by a 2010 ministerial decree in determining prices for domestic customers, The Jakarta Post reported.

?We?re still discussing the details, but, in principle, we want coal suppliers to follow all prevailing regulations in determining prices," he said in Jakarta on Friday.

Darwin said coal producers in Indonesia should put the country?s national interests first in order to ensure energy security for all citizens, ahead of a desire for profits amid soaring global coal prices.

?We want to secure PLN?s primary energy supply so it can produce enough electricity for the entire country. We?ll also support the company in downsizing the cost of primary energy procurements," Darwin said.

PLN said it had encountered difficulties in reaching agreements on prices with its coal suppliers. To date, the company has only secured deals through tough negotiations.

PLN?s largest supplier, Adaro Indonesia, said the two companies had not reached an agreement on coal prices.

?We?re still negotiating with PLN,? the company?s corporate secretary Andre Mamuaya said Thursday, adding that the company would insist on using international prices in deals with PLN.

This year, PLN will get about 10 million tons of coal from Adaro Indonesia.

?The price will be based on buyer-seller deals,? Andre said. (*)