Suralaya power plant cuts coal consumption

The coal-fired Suralaya power plant has reduced its coal consumption to 25,000 tons from 30,000 tons per day, because several coal suppliers had demanded for higher prices than state in the initial contract, the Bisnis Indonesia newspaper reported in its Wednesday edition.

State-owned electricity firm PT Perusahaan Listrik Negara (PLN)’s director of primary energy Ali Herman said several Suralaya power plant’s coal suppliers have failed to fulfill their contract due to the surge in coal prices in the international markets. The suppliers want to sell their coal at a higher price to other customers.

“In fact, the coal supply to Suralaya power plant is decreasing because the suppliers want to sell their products to others at the international prices, which has increased sharply. As a result, Suralaya power plant is forced to reduce its consumption of coal to 25,000 from 30,000 tons per day,” Ali Herman told the Bisnis in Jakarta on Tuesday.

Suralaya plant’s coal suppliers are state–owned coal company PTBA (6.1 million tons), PT Adaro Indonesia (1 million tons), PT Kideco Jaya Agung (1 million tons).

For example, PTBA has agreed in the contract to sell its coal at a price of Rp240,000 per ton, compared to the current international coal price of US$32 or about Rp270,000 per ton. (*)