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Coal inventories at Indonesian coal-fired power plants are currently ample, according to state-owned utility PLN, with stocks above the minimum 15 days of operation despite daily fluctuations.
The daily fluctuations are because of delays in shipments because of transport constraints. But there have been no major instances of coal producers failing to meet their supply contract obligations, PLN said. This is in contrast to late last year when low delivery volumes resulted in Indonesia imposing a month-long ban on coal exports in January this year to avert a domestic supply crunch.
PLN attributed the current ample stocks to the implementation of a ministerial decree earlier this year that empowered Indonesia's energy ministry (ESDM) to issue letters of assignment to coal mining companies, forcing them to supply PLN's coal needs in the event of a shortfall in supply contracts. The ESDM has so far issued 169 letters of assignment totalling 23.75mn t of coal to bolster PLN's stocks.
PLN said it is expecting coal supplies to remain stable in 2023 as the ESDM has already identified 125 companies that will receive letters of assignment, as well as the expected implementation of the coal public service agency that will address the price distortion for coal sold in the domestic market.
Argusmedia
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