TEMPO.CO, Jakarta – Deputy Secretary General of the Indonesian Coal and Energy Suppliers Association (Aspebindo) Bhirawa Wicaksana revealed the reason coal entrepreneurs prefer to export commodities on a large scale, even though they are subject to fines. The fine must be paid because the entrepreneur does not fulfill the domestic market obligation (DMO).
According to Bhirawa, entrepreneurs are tempted by market mechanisms and the lure of bigger profits. “It’s simpler than having to deposit it to PLN, it’s better to leave, just pay the penalty, and the penalty is okay, we can still pay the difference, we can still cover it at a high price,” he said in a discussion on the BLU DMO Coal in Jakarta. , Wednesday, August 24, 2022.
Entrepreneurs see that there is a niche in the price disparity between what the government sets in DMOs and the international market. In addition, there is an imbalance in the number of fines or penalties with high market prices.
The disparity in the price of coal purchased by PLN with international market prices, according to Bhirawa, has continued to widen since mid-2021. He calculated the difference in income between coal exports with 4,600 calories and sales to PLN of Rp 190 billion for each vessel with a capacity of 70 metric tons.
“The difference in sales is one ship, so it’s very high. It’s very high. The problem is, the schemes used by the government to maintain supply here have failed. Why are there two problems, first the high price disparity, secondly the imbalance in the amount of the penalty,
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