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Indonesia’s state power giant to sign long-term contract to secure coal supply for power plants

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Coal scarcity triggered by numerous factors such as weather conditions, price disparity, and the impact of the COVID-19 pandemic has prompted Indonesia’s state power giant PT PLN to take anticipatory measures to secure coal supply for the country’s electricity needs.

PT PLN is preparing an early warning system to monitor the security of coal supply, digitalisation of supply chain, an integrated system that provides real-time information on coal distribution, the amount of supply needed as applied by state coal miner PTBA, and robust cooperation involving the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM).

In addition to that, the company will focus on purchasing coal directly from a mining owner with a long-term contract aimed at guaranteeing that the supply is adequate.

“It is vital for PT PLN to cooperate directly with coal mining owners for the sake of coal supply for our power plants in the long-term,” said the company’s Executive Vice President Corporate Communication and CSR Mr Agung Murdifi as cited in the release on Monday (23 Aug).

Mr Agung also thanked the Government for its suggested steps in ensuring the sustainability of coal supply in the power system.

He elaborated PT PLN benefits from direct purchase from coal miners, in terms of the volume of supply and production.

Furthermore, the Government suggests that the power giant signs a long-term contract with a benchmark price evaluated every year.

Previously, PT PLN, state-owned coal miner PTBA Bukit Asam, and state railway company PT KAI signed a Memorandum of Understanding (MoU) to secure coal supply for the electricity needs.

“Today, we are shifting to the next level. Philosophically, we share one common view, but of course, we need to optimize in the operational context”, said PLN Deputy Director Darmawan Prasojo during the signing of the MoU on 19 August.

Meanwhile, PT PLN is considering to retire coal-fired power plants (PLTU) in 2025 and will replace them with renewable energy-powered plants, aimed at curbing emissions.

“We will be carbon neutral in 2060 as highlighted in the PLN Roadmap,” PT PLN Commercial and Customer Management Director Bob Syahril told katadata.co.id on 31 May.

According to the Paris Agreement signed in 2015, Indonesia is committed to slashing emissions 29 per cent below business as usual and 41 per cent with international cooperation by 2030.

Economist at INDEF, Rusli Abdullah, told TOC on 28 July that the decision to replace coal-powered steam power plants must be taken with careful considerations and preparation.

“If PT PLN is planning to stop the operation of its coal-fired power plants, I think geothermal power plants can be the best solution due to our huge amount of geothermal sources (23.9 GW the official data showed in March 2020). Yet, the plan needs thorough considerations and preparations as coal is still the main source of electricity,” said Mr Rusli.

The energy ministry has officially increased the 2021 coal output target from the initial target of 550 million tonnes to 625 million tonnes, indicating that coal is likely to be Indonesia’s energy mainstay in the long run amid continued efforts to curb emissions and develop renewable energy-based power plants.

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Indonesia

Riau Islands govt reduces Batam-Singapore ferry fares by IDR 30K to boost tourism

The Riau Islands Provincial Government, in cooperation with ferry operators, has reduced the cost of round-trip ferry tickets on the Batam-Singapore route by IDR30,000 (US$2). This reduction, effective 24 September 2024, follows discussions held from 22-23 September. Officials anticipate further pricing adjustments as part of ongoing efforts to ensure affordability.

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INDONESIA: The Riau Islands Provincial Government and ferry operators have agreed to reduce round-trip ferry ticket prices for the Batam-Singapore route by IDR30,000 (US$2), effective from 24 September 2024.

This decision followed discussions between the government and ferry operators held from 22-23 September 2024.

Junaidi, Head of the Riau Islands Transportation Agency, confirmed the fare reduction in a statement on 24 September.

He explained that the IDR30,000 (US$2) price cut resulted from ferry operators’ calculations and marked the first phase of a broader review of Batam-Singapore ferry pricing.

This initial reduction aims to establish a more suitable pricing structure for ferry services between the two destinations.

Junaidi referred to remarks by Governor Ansar Ahmad, who emphasized the importance of conducting a detailed survey to understand the root causes of high ferry ticket prices.

“As Governor Ansar has mentioned, a survey will be conducted to identify the causes of the high ticket prices to determine the appropriate pricing for Batam-Singapore ferry tickets,” Junaidi added.

One factor contributing to the increase has been the rise in seaport taxes, particularly in Batam, where the tax increased from IDR65,000 (US$4.3) to IDR100,000 (US$6.62).

Additionally, ferry operators cited rising exchange rates, higher fuel costs, increased counter rental fees, and crew salary hikes as key reasons for the surge in prices.

While ferry operators have raised concerns about these pressures, Junaidi stressed that a comprehensive survey would be essential to verify the claims and guide future pricing decisions.

He noted that further steps would be taken once the survey is completed.

Junaidi also addressed ongoing delays in finalizing visa-on-arrival (VoA) regulations for foreign tourists, stating that simplifying the VoA process could significantly impact ferry passenger numbers.

He believes that easing these regulations would encourage more foreign tourists to travel between Batam and Singapore, potentially increasing ferry occupancy rates.

The issue of high ferry ticket prices has been a long-standing concern for local authorities.

Governor Ansar Ahmad had previously announced plans to form an investigation team to address the significant price hikes that have occurred since the COVID-19 pandemic.

The fares for the Batam-Singapore route experienced a sharp increase, with prices doubling after the pandemic.

One-way ticket prices, which were previously between IDR250,000 (US$16.55) and IDR350,000 (US$23.17), surged to IDR500,000 (US$33.1) to IDR550,000 (US$36.4).

In a press release issued on 23 September 2024, Governor Ansar further detailed the fare hikes, stating that round-trip ticket prices, which were once around IDR480,000 (US$31.77), had risen to approximately IDR760,000 (US$50.3).

Governor Ansar highlighted the importance of reducing ferry ticket prices to boost passenger occupancy rates and attract more foreign tourists, aligning with broader efforts to revitalize tourism in the region, which was heavily impacted by the pandemic.

The recent IDR30,000 (US$2) price reduction is seen as a first step in adjusting ferry prices to more affordable levels, with further reviews and negotiations expected to ensure sustainable and fair pricing for the Batam-Singapore route.

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Crime

Singaporean man arrested in Batam for alleged child sexual abuse

A Singaporean man was arrested in Batam, Indonesia, for sexually abusing his 16-year-old stepdaughter. The 50-year-old was apprehended at his residence in Batam on 7 September. Local authorities accused that the perpetrator repeatedly assaulted the victim during his visits to Batam, and the abuse is believed to have lasted for more than two years.

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BATAN, INDONESIA:A Singaporean man has been arrested in Batam, Indonesia, on charges of sexually abusing his underage stepdaughter for over two years.

The 50-year-old suspect, identified only as AH, was apprehended at his residence in the Mutiara View housing complex on 7 September.

As per reported by local media, police alleged that AH repeatedly sexually assaulted his 16-year-old stepdaughter, AF, during his frequent visits to Batam.

According to Senior Police Commissioner Heribertus Ompusunggu, chief of the Barelang precinct police, the perpetrator engaged in sexual intercourse with the victim an estimated 120 times during his weekly trips to the Indonesian island.

The alleged abuse began in June 2022, shortly after AF, who used to live with her grandmother in Karawang, West Java,  moved to Batam to live with her mother.

One day in July 2022, the girl slept in the same room with AH while her mother was in another room.

The police believed that after AH may have gave AF a drink laced with jasmine flowers, he allegedly sexually assaulted her.

On 7 September, the victim’s mother sought help from a friend to escape the house, unable to endure her husband’s violent behaviour and the sexual abuse of her daughter.

The victim’s mother was afraid to report the abuse due to repeated threats from the alleged perpetrator.

The police have detained AH for further investigation into alleged violations of the 2016 law on child protection.

If found guilty, he could face a prison sentence of five to 15 years, with an additional punishment of one-third of the jail term due to his status as the victim’s stepfather.

 

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