Listrik to Ask Bukit, Indika, Adaro to Cut Coal Price

PT Perusahaan Listrik Negara, Indonesia’s state utility company, will ask seven coal suppliers including PT Tambang Batubara Bukit Asam and PT Adaro Energy to reduce prices of the fuel for this year, Listrik Negara Primary Energy Director Nur Pamudji said.

Listrik Negara will meet its suppliers next week, and expects to agree on a lower price by end of the month, Pamudji said in a telephone interview from Jakarta today. Other companies that supply coal to Listrik Negara are PT Berau Coal, PT Kideco Jaya Agung, a unit of PT Indika Energy, and PT Kaltim Prima Coal, a unit of PT Bumi Resources, he said. 

“We want to use the average benchmark price in the fourth quarter as a base to set this year’s coal price, while they want to use the January price,” Pamudji said. 

The reference coal prices in the fourth quarter averaged $97.2 a metric ton, while January price was set at $112.4 a ton, according to data compiled by Bloomberg News. Source: Reuters