Issue: 007 Friday 27 March 2015 CoalindoNews is published in 2007 by PT.Coalindo Energy and dedicated as complimentary for each subscriber of Indonesian Coal-price Index (ICI) . With regards to new ICI subscriber and trial issues , please contact : Telephone + 62-21-3001 2490 and + 62-21-3001 2488, Fax : + 62-21-3001 2491, Email : maydins @coalindoenergy.com & Website : www.coalindoenergy.com COMMITMENT TO DEVELOP 6,000MW The Minister of Energy and Mineral Resources, Sudirman Said, asserted that in the 35,000MW program investors who had stated their commitments reached a total capacity of 6,000MW. “There is to be a sale and purchase process with PLN this year, while another 6,000MW is in the process of preparing for sale and purchase,” concluded Sudirman. RI 55,000MW, CHINA 1.3 MILLION MW Coordinating Minister for Economy, Sofyan Djalil, said at the moment the national electricity installed capacity is 55,000MW. In China, it reaches 1.3 million megawatts. “Our electricity demand will keep on growing,” he said. COAL EXPORT ABOLISHED The Director General of Mineral and Coal, R. Sukhyar, stated that the government is to absorb the entire coal production of mining companies for domestic requirement. Thus, export will be abolished within the next 15 years. 88.13 MILLION TONS DEFICIT The Director General of Mineral and Coal, R. Sukhyar, said the total domestic coal requirement in 2015 reaches 92.31 million tons and soars to 151.87 million tons in 2019. “In the RPJMN 2015-2019 the target is 102 million tons and 240 million tons. Thus there is a gap or deficit of 9.69 million tons in this year and 88.13 million tons in the 2019 period.” ELECTRICITY INSTALLED CAPACITY From the 35,000MW program, the government targets that 99% of the Indonesian people will enjoy electricity by 2020. The Director General of Electricity, Jarman, said that the national installed capacity of electricity is 53,500MW comprising of 48.000MW PLN’s and the rest is that of Independent Power Producers (IPP). GROUNDBREAKING OF JENEPONTO PLTU Bosowa Energi began groundbreaking of the 2x125MW PLTU phase II in Jeneponto, South Sulawesi. The laying of the corner stone and pile driving was effected symbolically on Thursday, March 19, 2015 at the location of the PLTU. 40% STOPS PRODUCTION The low price of coal is increasing affecting the coal industry at home. The Indonesian Coal Mining Association (APBI-ICMA) recorded about 40% coal mines in Indonesia had ceased producing, said APBI Vice-Chairman Pandu Sjahrir. 29 M TON COAL RESERVES Based on the Handbook of Energy and Economic Statistic of Indonesia 2013, in 2013 Indonesia’s coal resources amounted to 119.4 billion tons, scattered particularly in Kalimantan of 55.8 billion tons, Sumatra 63.2 billion tons and other regions o.4 billion tons. Coal reserves were reported 29 billion tons; 16.3 billion tons in Kalimantan and 12.7 billion tons in Sumatra. RP1 BILLION AID FOR ROADS PLN President Director Sofyan Basir promised to contribute Rp1 billion for road repair in the area in which the 2x1,000MW Batang power plant, the biggest in ASEAN, is to stand. “If the project runs well, all problems of infrastructure in this village and its surroundings (Batang, Central Java) will be solved,” said Sofyan. HBA TO INCREASE IN MARCH The Ministry of ESDM determined the coal price reference (HBA) in March 2015 at US$67.67 per ton, up 7.7% from the HBA in February at US$62.92 per ton. March HBA is the highest price throughout 2015. As informed by the ESDM Ministry. DOMESTIC CONSUMPTION 60% The percentage of coal consumption in domestic market reaches 60% or 240 million tons in 2019, a jump compared to this year’s target of 24% or 102 million tons. The export portion shrinks from 333 million tons in 2015 to 160 million tons in 2019, informed the Director General of Mineral and Coal. DOMESTIC COAL REQUIREMENT The Director General of Mineral and Coal is calculating the planned domestic coal requirement in 2015 and 2019. For PLTU, from 74 million tons to 119 million tons. Metallurgy, 4.65 million tons from 3.38 million tons. Fertilizer industry, 11.o8 million tons from 1.31 million tons. Cement industry, from 10.54 million tons to 13.22 million tons. Textile industry in 2019, 3.02 million tons. Paper industry, 880,000 tons and briquette industry, 30,000 tons. THE IMPACT ON DEFENSE INDUSTRY The Head of Licensing Sub-directorate, Directorate of Technology and Defense Industry, Directorate General of Defense Potential, Ministry of Defense, Colonel CBA Isdiyanto, disclosed that the weakening coal price affects the sale of explosives. DEVELOPS A 2X800MW POWER PLANT PT Medco Energi Internasional Tbk is attracted to develop a 2x800MW power plant in the 35,000MW program. The President Director and CEO of MedcoEnergi, Lukman Mahfoedz, does not mention the location and type of power plant to be developed. PRODUCTION PEGGED AT 400 MILLION TONS Based on the National Medium Term Development Plan 2015-2019 referring to Presidential Regulation No.2 Year 2015, this year’s coal production plan targeted for 425 million tons drops to 400 million in 2019. 22% LOW RANK In the 2015-2024 Electricity Supply Business Plan (RUPTL), it was disclosed that 22 percent of Indonesia’s coal is of low rank with calorific value less than 5,100 kcal/kg and 66 percent of medium rank of 5,100 -6,100 kcal/kg. The remaining 12 percent is high rank of 6,100 – 7,100 kcal/kg. COAL SLURRY FOR POWER PLANT PT PLN is planning to use liquefied coal through upgrading or coal slurry as fuel for power plants to replace diesel-powered power plants. That was the information quoted from the 2015-2024 Electricity Supply Business Plan (RUPTL). OVERPRODUCTION Finance Director of PT Toba Bara Sejahtra Tbk, Pandu Sjahrir, said in the past two years the price of coal drops from US$100 per ton to below US$60 per ton. This is due to overproduction. If in the past five years Indonesia’s coal production growth was 10-15 percent, in the past two tears it rises from 350 million tons to 420 million tons.
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