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PLN coal consumption is set at 96 Mt in 2019

PLTU Suralaya (Image credit : Indonesia Power)

JAKARTA (RambuEnergy.com) – The state-owned utility company PT Perusahaan Listrik Negara (PLN) sets projected coal consumption this year at 96 million tons (Mt), up from 91.1 Mt in 2018.

On a national scale, Indonesia consumed 115 Mt of coal last year, up from 97 Mt in the previous year.

The increase was partly driven by the government’s domestic market obligation (DMO) policy, which requires coal producers to allocate 25% of their coal production to the domestic market.

The increase is in line with the increasing demand for coal-fired power plants (PLTUs), as some of the coal-fired power plants will start commercial operation this year.

Among coal-fired power plants that are expected to kick off operation this year are PLTU Jawa 7 with an installed capacity of 2×1000 MW, PLTU Jawa 8 with a capacity of 1000 MW and PLTU Lontar 350 MW.

While, some coal-fired power plants will start operating in the following year, namely PLTU Jawa 7 (2×1000 MW) and PLTU Jawa 8 (1000 MW). PLTGU Jawa 1, a gas power plant with a capacity of 2×800 MW, is projected to start operating in 2022-2023.

In 2018, Indonesia produced 528 Mt of coal, far higher than the initial target of 485 Mt. In the middle of the year, the government allows some coal producers to add their production by up to 21.9 Mt, to take advantage of higher coal price and ultimately increase the government’s revenues.

Last year, the Indonesian Average Coal price (HBA) was at US$98.96 Mt per ton.

The Indonesian government’s coal production shows an upward trend in the past few years, from 456 Mt in 2016 to 456 Mt in 2017 and 461 Mt in 2018.

The increased production has drawn criticism from some activists, accusing the government to have taken a slower step to reduce fossil fuel consumption in the country and accelerate the use of greener fuel. (*)

Written by Staff Writer

Edited by Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

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