February 28, 2018 / 10:57 AM / 21 days ago

Indonesia state power utility urges Widodo to set new coal pricing rules

JAKARTA, Feb 28 (Reuters) -

* Sofyan Basir, the chief executive of Indonesia’s state-owned power utility Perusahaan Listrik Negara (PLN), said on Wedenesday he hoped President Joko Widodo would sign a new regulation on domestic coal pricing in early March.

* PLN hopes the rules will fix coal prices at between $60 and $70 per tonne, Basir said without clarifying further.

* The regulations are needed to shield PLN from coal price fluctuations, he said, adding the change would help PLN “return to big profits” and avoid increasing tarrifs.

* This year PLN plans to spend around 100 trillion rupiah ($7.28 billion) on transmission, distribution and power stations in remote areas, he said.

* The government has been working on plans to regulate domestic coal prices since late 2017, and the discussions have impacted some miners’ share prices.

$1 = 13,740 rupiah Reporting by Wilda Asmarini Writing by Fergus Jensen Editing by Mark Potter

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