Government sets the coal price for Domestic Market Obligation (DMO) at US$70 a ton starting Jan 1, 2020. The government also pegged 25% of the miner’s production distributing for DMO. To run the obligation, the government had prepared strict sanctions on business permit holders.
Earlier energy and mineral resources (EMR) ministry is requiring the miners to lift up the allocation of coal for DMO around 155 million tons (MT) in this year, an increase of 27% over 2019’ portion of 128 MT. The rising amounts was in line with the projected increase in domestic demand.
It said, 70% or 109 MT of the planned DMO volume will distribute for state-owned power producer, PT Perusahaan Listrik Negara (PLN). Then followed by the processing and refining industry as much as 11% or 16.52 MT and the cement industry by 10% or 14.54 MT.
