The Indonesian government is requiring coal miners to increase their allocation of coal for the domestic market in 2020 to 155 million tons (MT), an increase of 27 percent over this year’s requirement of 128 MT, officials told media on Wednesday (Dec 11). The rising domestic market obligation (DMO) was in line with the projected increase in demand.
Energy and mineral resources ministry’s production director Dodik Ariyanto said 70% or 109 MT of the planned DMO volume next year is aimed at PT Perusahaan Listrik Negara (PLN). Then followed by the processing and refining industry as much as 11 percent or 16.52 MT and the cement industry by 10% or 14.54 MT.
The ministry also projects the realization of DMO this year will reach 124.1MT, with 96.4 MT will be absorbed by PLN, and 27.7 MT will be used by the non-electricity sector. The projection is actually lower than this year’s initial plan of 128 MT. Whereas until October, the realization of the DMO volume was at the level of 95 MT.
The government previously announced the DMO sale price of coal for next year is still at US$70 per ton, as is applicable this year. The DMO obligation is also imposed on all companies engaged in the coal sector.