After introducing its Domestic Market Obligation (DMO) policy for coal in March 12, 2018, Indonesia government is going forward with its plan to introduce a DMO for gas. In near time, the Ministry of Energy and Mineral Resources (MEMR) will implement the special price of gas for DMO.
State-owned power producer PT Perusahaan Listrik Negara (PLN) has appealed to the government, the gas prices for DMO can be restricted at US$6.5 per million british thermal unit (MBTU) for Java and
US$7/MBTU for outside Java in an effort to reduce electricity prices. At present, PLN is still getting gas prices around US$9 to US$11 dollars per MBTU.
Based on the Government Regulation No. 79/2014 there are four primary energy for electricity generation, namely, coal, gas, hydro and geothermal. Where, PLN get specialty treatment on the primary energy.
