Sign up | Log in



Home  >>   Daily News  >>   Indonesia  News  >>   Energy  >>   Coal prices, government policy, hit state utility
NEWS UPDATES Asean Affairs        14 January 2011

Coal prices, government policy, hit state utility

Related Stories

January 12, 2011
Indo businesses hit by tariff hike

January 10, 2011
Indonesia hopes stricter supervision reduces oil shutdowns

January 3,2011
Indonesian coal production surges

November 30, 2010
Indonesia to push coffee

October 25, 2010
Indo land reform criticized

October 20, 2010
Indonesian sugar production down 25 percent

As coal prices continue to increase, state utility Perusahaan Listrik Negara faces problems in securing enough coal to meet power demands, a top executive said.

"We are in a dilemma now. The increasing price of coal is a real problem," PLN chairman Dahlan Iskan said on Thursday.

High coal prices, he said, will in turn force the company to bear high operating costs.

Prices at Australia's Newcastle port, a benchmark for Asia, rose 8 percent to $129.9 per metric ton as of Jan. 7, up from $119.47 per metric ton in December. The price of 6,322 cal/kg coal is $112.4 per metric ton, up from $103.4 per metric ton in December .

PLN has contracts with 53 suppliers to secure 55.8 million tons of coal to fuel its power plants, but Dahlan said it is at a crossroads with the rising prices.

Nur Pamudji, PLN's director of primary energy, said it would demand producers honor the coal price stated in an Energy Ministry decree.

"The decree says that the price of coal in 2011 depends on 2010's fourth-quarter average," Nur said.

The average price in December was $103.4 per metric ton, but the Indonesian Coal Mining Association (APBI) said coal companies had no choice but to increase their prices.

"International coal prices keep increasing, so we have to sell according to global prices," said the APBI's executive director, Supriatna Suhala.

Harsh winter weather and floods in Australia caused coal prices to rise, Supriatna said, adding that prices could reach $120 per metric ton this year.

Fabby Tumiwa, an energy analyst from the Institute of Essential Services Reform, said PLN should recalculate its operational costs "because the assumptions are totally different from the state budget."

PLN must raise electricity prices and demand more subsidies from the government, he said.

It will receive Rp 41.2 trillion ($4.6 billion) in electricity subsidies this year, down from Rp 55.1 trillion in 2010. "I think the government has to support PLN to keep it alive," he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    14  January 2011 Subsribe Now !
• Ground broken for new Cambodian dam
Subcribe: Asean Affairs Global Magazine
• Indo rupiah heads down Asean Affairs Premium
• Coal prices, government policy, hit state utility
• Airlines may increase fuel surcharge
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Thai banks lift rates
• New line strains Thai Mitsubishi
• Hanoi banks target capital increase
• HCM City promises to help businesses
Asean Analysis    14 January 2011 Advertise Your Brand
• World Bank’s 2011 economic outlook Sponsor Our Events
Asean Stock Watch    14 January 2011
• ASEAN Market Outlook
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand