JAKARTA – The Indonesian government will set up a Public Service Agency for coal levy collection in the first quarter of 2023 in order to ensure the coal supply for electric power plants and industrial needs.

Arifin Tasrif, the Minister of Energy and Mineral Resources (ESDM), admitted that this plan pertains to the crises of coal supply that has forced coal manufacturers to temporarily halt exports in the beginning of 2022.

The coal price set for Domestic Market Obligation (DMO) for local power plants will be determined by the market mechanism. However, PLN will still pay USD 70 per ton of coals to this upcoming public agency. In the designed scheme of this public service agency, the gap between the market price and the PLN-set price will be covered by the export duties from coal-mining companies.

The incurred compensation from the total export and DMO coals sales will vary. “Each company will submit their Work Plan and Expenditure Budget, including its production plan and calories needed. We will then set the fees that must be paid and will be channelled to non-tax state revenue,” Tasrif said. (LK/ZH)