Indonesia revises new domestic coal price cap to mid-March — official
Indonesia's mining minister has revised the effective date for a pricing cap on coal for domestic power stations to mid-March, a ministry official said on Tuesday, referring to a new ministerial decree signed on Monday.
A copy of the latest decree was published on the ministry website on Tuesday.
The cap, which was set at $70 per tonne for two years for coal with a calorific value of 6,322 kilocalories, will now apply from March 12, revised from Jan. 1, 2018 previously.
To be eligible for an output increase of up to 10 percent, companies must meet domestic supply requirements, said the ministry's Coal and Minerals Director Bambang Gatot.
Companies can propose a revision of their output quota from June, Gatot said.
Ido Hotna Hutabarat, CEO of Arutmin, a unit of Bumi Resources , said the new rules would affect coal miners' revenues.
Hutabarat said miners would need to revise mining plans to accommodate any output increase (Reporting by Wilda Asmarini; writing by Fergus Jensen and Ed Davies; editing by Richard Pullin and Tom Hogue)