Observing the Profit and Loss of the Coal Public Service Agency Scheme

Constraints on coal supply for power plants have prompted the government to come up with a new scheme.

The Public Service Agency (BLU) scheme for coal is currently being discussed by the government to ensure the smooth supply of coal for power plants. The presence of the coal BLU scheme is considered not fully a solution to the problem of domestic coal supply. Furthermore, the BLU scheme is considered to have the potential to create new problems. The Executive Director of Indonesian Resources Studies (IRESS) Marwan Batubara revealed that the coal BLU scheme has the potential to be more profitable for business actors than PT Perusahaan Listrik Negara (PLN). Furthermore, the BLU scheme also has the potential to further burden PLN's finances. Moreover, Marwan assesses that the fees that will be charged for business actors may not be able to cover the disparity in coal prices between the market price and the baseline in the DMO of US$ 70 per ton. "Every increase (price) of US$ 10 per ton, the Basic Cost of Supply (BPP) of electricity increases by Rp. 10 trillion. If we talk about an increase (difference) of US$ 50 per ton, it means that BPP will increase by Rp. 50 trillion," said Marwan

|•SOURCE•| Articles :KONTAN | Image :SINDO |

READ MORE

|• NATIONAL •|Build New Capital City
|• INTERNATIONAL •|Collaborating with vision SMARTFREN
|• BANKING •|Big Ambition of PT Elang Mahkota Teknologi Tbk
|• SOCIAL •|luxury car drivers tend to be arrogant
|• BUSINESS •|ID Food will Strengthen Indonesia's Food Ecosystem