Luhut finally stepped in to solve the PLN Coal Crisis

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Jakarta, ONENEWS.MY.ID – The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan finally intervened to overcome the chaotic crisis of coal supply for PT PLN (Persero) power plants.

On Thursday afternoon (06/01/2022), Luhut held a coordination meeting with a number of relevant ministers, including the Minister of Energy and Mineral Resources (ESDM) as well as other stakeholders, including coal entrepreneurs and PT PLN (Persero) to discuss handling the crisis. coal power plant in the country.

Then, what was the result?

Luhut said his party discussed proposed solutions for emergency and long-term conditions for this problem.

However, his party has not yet decided on the policies that will be carried out in the future because today’s meeting only discusses the formula and a number of proposals from the relevant stakeholders.

The plan, tomorrow it will hold a meeting again and will immediately take a policy at that time.

“Tomorrow we will continue the meeting. We will divide the fulfillment into two now and later a permanent settlement. For now there are no problems emergencyit’s past. There’s a little items what we want to finish, tomorrow the team will work. Then at the same time, we proposed a new formula, studied by the team tomorrow at 2 o’clock, we have to decide,” he explained to reporters when met at his office, Thursday (06/01/2022).

As is known, the issue of the coal supply crisis has made President Joko Widodo (Jokowi) also intervene. In fact, today, Thursday (06/01/2022), the President announced to revoke 2,078 Mining Business Permits (IUP) for minerals and coal.

The President said that the revocation of the IUP was due to the fact that he had never submitted a work plan.

“Today, as many as 2,078 mining and coal mining companies’ permits have been revoked because we have never submitted a work plan, permits that have been given for years but have not been carried out and this has caused the use of natural resources to be taken hostage to improve people’s welfare,” said Jokowi, Thursday (06/01/2022). ).

Jokowi said the government will continue to improve natural resource management so that it is equitable, transparent and fair to correct injustice and natural damage.

“Forest mining permits as well as state land use continue to be evaluated thoroughly. Permits that are not executed, are not productive, are transferred to other parties and are not in accordance with their designation and our regulations will be revoked,” he said.

Previously, on Monday (03/01/2022), Jokowi threatened to revoke not only export permits, but also Mining Business Permits (IUP) for coal companies that did not fulfill their domestic coal supply obligations (Domestic Market Bond/ DMO), following the critical condition of coal supply for PT PLN (Persero) power plants.

Jokowi emphasized that mining companies must comply with the DMO regulations, especially for the PT PLN (Persero) power plant. According to him, this is absolute and non-negotiable.

“There is already a DMO mechanism that requires mining companies to fulfill PLN’s generators. This is absolute, it must not be violated for any reason. Companies that cannot fulfill their obligations to meet domestic needs can be given sanctions. but also the revocation of his business license,” said Jokowi.

Jokowi also ordered the Ministry of Energy and Mineral Resources, BUMN, and PLN to find the best solution for the national interest.

“First, regarding the supply of coal, I have ordered the Ministry of Energy and Mineral Resources, the Ministry of SOEs and PLN to immediately find the best solution for the national interest. The priority is to fulfill domestic needs for PLN and domestic industries,” he stressed.

He said that private companies, state-owned enterprises and their subsidiaries engaged in mining, plantations, and other natural resource processing should prioritize domestic needs first before exporting.

“I need to remind that the government requires private companies, BUMN and their subsidiaries engaged in mining, plantations and other natural resource processing to provide domestic needs first, before exporting,” he said.

“This is a mandate from Article 33 paragraph 3 of the 1945 Constitution that the earth, water and natural resources contained therein are controlled by the state and used for the greatest prosperity of the people,” he explained.

As is known, the Ministry of Energy and Mineral Resources (ESDM) has adopted a policy to ban coal exports for the period 1 to 31 January 2022 for holders of Mining Business Permits (IUP) or IUPKs for the Production Operation stage, and IUPK as Continuation of Contract/Agreement Operations and PKP2B as a result of the crisis in coal supply for PLN power plants and private power developers (Independent Power Producer / IPP).

Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources (ESDM) Ridwan Djamaluddin said that this step must be taken and is temporary in order to maintain security and stability of electricity and the national economy.

The lack of coal supply for power plants at the end of December 2021 and January 2022 threatens electricity supply for 10 million PLN customers, ranging from the general public to industry in Java, Madura, Bali (Jamali), and non-Jamali.

Nearly 20 Steam Power Plants (PLTU) with a total power of around 10,850 Mega Watts (MW) are threatened with extinction if coal supplies for power plants are not supplied by coal companies.

[Gambas:Video CNBC]



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