House of Representatives Indonesia Rejects Coal Public Service Agency Rejects Coal Public Service Agency

Members of Commission VII DPR rejected the government's plan to form a public service agency or BLU for coal collection as a solution to the recent coal supply crisis for the PT Perusahaan Listrik Negara (Persero) power plant.

Efforts to tighten supervision of the fulfillment of domestic coal needs are prioritized. The establishment of the Public Service Agency is feared to increase the basic electricity tariff. This was raised in a working meeting of members of Commission VII DPR with the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, Thursday (13/1/2022), in Jakarta. One of the agenda of the meeting was to discuss the coal supply crisis, including the policy of banning coal exports, which has occurred recently. The meeting was chaired by the Chairman of Commission VII DPR from the Nasdem Party, Sugeng Suparwoto, and was attended by officials from the Ministry of Energy and Mineral Resources. This working meeting concluded, among other things, that Commission VII of the DPR urges the government to tighten supervision of the fulfillment of domestic market obligation (DMO) for coal for PLN's power plants. They also rejected the plan to form a Coal Public Service Agency as a solution to the recent coal supply crisis. "Commission VII of the DPR urges the Minister of Energy and Mineral Resources to increase supervision of the implementation of the coal DMO and impose strict sanctions on companies that do not fulfill their coal DMO obligations. Commission VIII of the DPR also urges the Minister of Energy and Mineral Resources not to impose a DMO price for coal based on the market price," said Sugeng when reading the conclusion of the meeting. In the meeting, Arifin said, there are 47 coal mining companies that have fulfilled their DMO obligations 100 percent, 32 companies have fulfilled the DMO 75-100 percent, and 25 companies have fulfilled the DMO 50-75 percent. Then, there are about 428 coal mining companies that have not fulfilled their DMO obligations at all. According to Arifin, coal mining companies that do not fulfill their DMO obligations will be subject to sanctions in the form of fines.

|•SOURCE•| Articles :KOMPAS | Image :KOMPAS |

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