STUDY OF THERMAL COAL PRICING FOR COAL-FIRED POWER PLANT IN INDONESIA FROM THE PERSPECTIVE OF PRODUCER AND CONSUMER BY USING PRODUCTION COST APPROACH

• Main Author: Hanifianto, Widy
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72185
• Institution: Institut Teknologi Bandung

Production costs must be calculated well to ensure the coal production activity is profitable for the company. Therefore, a thorough calculation of production costs is needed to determine the optimal selling price of coal. The purpose of this study is to determine the coal production costs per ton for each production activities, to find out the most optimal margin, and to determine the coal selling price to supply electricity in Indonesia. The method used in calculating the coal production cost is activity-based costing approach, which is calculating the cost of coal production per ton based on the details of costs per stage of production activities. In addition, the calculation of the cost goods sold of electricity is carried out as the basis for calculating coal purchasing cost. Coal production costs for each production activities can be classified as: (a) overburden removal cost is $10.35/ton (b) coal getting cost is $1.68/ton (c) coal handling cost is $0.64/ton (d) Coal hauling cost is $5/ton (e) Coal processing cost is $1.98/ton (f) Depreciation and Amortization $3.48/ton (g) Environmental cost $1.87/ton (h) Overhead $7.50/ton. The total cost of coal mining production is calculated at $32.51/ton or Rp482.561/ton. The most optimal margin is 25% from coal production cost which is $8.13/ton or Rp120.640/ton. Coal selling price to supply electricity in Indonesia is $43.48/ton or $645.426/ton.