Indonesia has capped the price of domestic coal for power stations at $70 per tonne for two years, in new rules issued this week, a government spokesman said on Friday.
The Southeast Asian nation is the world’s biggest exporter of the dirty fuel and the rules could hit miners currently enjoying coal prices at their highest level in five years.
With elections looming in 2019, the government plans to keep electricity tariffs unchanged this year and next, and the cap on thermal coal for power is intended to shield state-owned utility Perusahaan Listrik Negara (PLN) from price fluctuations.
“The (maximum) price of coal … for power stations is $70, fixed,” energy ministry spokesman Agung Pribadi told reporters on Friday at a news conference on the step and other new rules. Read More…