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Indonesia’s PLN to build 3 coal terminals, mulls buying coal concessions

JAKARTA (– State electricity company PT PLN is planning to develop three coal terminals, located in West Java, Sumatera and East Kalimantan as a move to assure sustainability of coal supply for power plants in the future, a company official said.

“The coal terminals will not only function as assuring coal stocks, but also enable PLN to blend various type of coals,” PLN head of coal division Harlen told on the sideline of Coaltrans Asia conference in Bali.

Harlen said bad weather often disrupts coal delivery to PLN power plants as happened in the past six months. Therefore, by developing coal terminals, PLN can assure enough stocks regardless of weather disruptions.

He said the first coal terminal will be built in West Java as the area requires huge amount of coal to generate its power plants.

In addition to developing coal terminal, PLN is also in talks to acquire at least coal concessions as a move to assure future coal supply. The coal concessions are located in Sumatera and Kalimantan islands.

PLN is currently the largest buyer of Indonesia’s coal production.

The government of Indonesia is embarking on developing 35 MW of additional power capacity between 2015-2019 and a further 45 GW by 2025.  57% of the total 35 GW power projects will come from coal-fired power plants and require significant participation from private power producers (IPP).

Of the 35 GW, PLN will develop around 10 GW of installed capacity power plants.

Based on the current progress of the ambitious plan, only around 19 GW would be completed by 2019 due to various reasons including delayed tender, financial closing and other reasons, the energy and mineral resources minister Ignasius Jonan admitted recently. (*)

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