Ministry ready to a mediator for PLN and coal producers

Minister of Energy and Mineral Resources Sudirman Said said his office is ready to serve as mediator between coal producers and public utility PT Perusahaan Listrik Negara (PLN) (Persero) over prices of coal to be supplied to the 35,000 MW power projects.

The Indonesia Coal Mining Association (ICMA) has asked for a 1-3 percent cost of insurance on top of coal selling-purchasing price as incentive so that they can ensure coal supplies to the power projects, the ministry said in a statement.

?I thank ICMA for their opinion that at current prices, coal supplies may be hard to come by. It is not because there is no coal to be exploited but the exploitation is not economical at certain level of price,? Sudirman said during a press conference at the Indonesian Chamber of Commerce and Industry on Thursday.

He said the government is reviewing several options to ensure that the coal price is economical for coal producers to sell and for power firms to buy.

?The government?s function is to become a bridge for a discussion process involving PLN, ICMA and IPPs which will use coal as fuel,? he said.

Editing by Johannes Simbolon