Coal Price for Industry Will Increase to US$ 90/Ton Starting April 1st


The price of coal used for the industry will rise. This was conveyed by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

He expanded the application of the coal price of US$90 per tonne to all domestic industries, except the metal mineral processing and/or refining industry (smelters). Previously, the price only applied to the cement and fertilizer industry.

This change is contained in the Decree of the Minister of Energy and Mineral Resources (Kepmen) Number 58.K/HK.02/MEM.B/2022 concerning the Selling Price of Coal for Fulfilling Domestic Raw Material/Industrial Fuel Needs.

This new regulation revokes the Minister of Energy and Mineral Resources Decree No. 206.K/HK.02/MEM.B/2021 concerning the Selling Price of Coal to Fulfill the Domestic Demand for Raw Materials/Fuels for the Cement and Fertilizer Industries.

“That to provide certainty in fulfilling the need for coal as raw material/industrial fuel in the country, it is necessary to determine the selling price of coal for the fulfillment of domestic raw materials/industrial fuels,” said Arifin in the consideration of Ministerial Decree 58/2022, quoted on Sunday (27/3).

The price of US$90 per tonne is based on the reference specifications for calories of 6,332 kcal/kg, 8% total moisture, 0.8% total sulfur, and 15% ash.

In the third point of Kepmen 58/2022, Arifin also stipulates that if coal needs are not fulfilled for domestic industrial raw materials/fuel, the director-general of minerals and coal on behalf of the minister can appoint a mining business entity to meet the coal needs.

These mining business entities include holders of a mining business permit (IUP) for the stage of coal production operations (OP), a special IUP for the stage of coal mining operations, a coal mining concession agreement for the OP activity stage, a special mining business permit as a continuation of the contract/agreement operation, or coal transportation and sales permit.

If the mining business entity that has been appointed to meet domestic coal needs does not implement it, it will be subject to sanctions following the laws and regulations.

“This ministerial decision (Kepmen 58/2022) will take effect on April 1, 2022,” the regulation said.