Indonesia’s realized coal Domestic Market Obligation (DMO) in the first quarter of this year (Q1 CY20) stood at 31.53 million tonnes (MnT), or 20 percent of the full-year DMO volume target of 155 MnT.
The Ministry of Energy and Mineral Resources said in a statement that of the realized DMO volume, about 25.6 MnT was absorbed by the power plant sector, while 5.93 MnT by other domestic industries. Meanwhile, the total national production for the first quarter has reached 143 MnT.
Under existing coal DMO regulation, coal miners in the country are obliged to allocate at least 25 percent of their annual coal output for the domestic market including power plant sector and other industries.
Elsewhere, the ministry’s Spokesman Agung Pribadi said in the statement that the ministry is optimistic that domestic coal demand can be entirely fulfilled by domestic coal production despite the Coronavirus outbreak. He said that the country’s coal production plan this year remains intact despite the Covid-19 pandemic, although he said that if the pandemic continues for a longer time, domestic demand could decline by 5 percent.
The government has set a coal selling price for general electricity of USD 70 per metric ton (MT) in 2020. Meanwhile, the selling price of coal for other industries in the country refers to its thermal coal benchmark price (HBA) set by the government every month.
“April HBA is set at USD 65.77/MT or down by USD 1.31/MT from the previous month of USD 67.08/MT”, Agung said.
Even so, the government continues to ensure that coal demand for various domestic industries can be met from domestic production, even in the midst of a pandemic. This is because coal production is still in accordance with the established plan so that supply is maintained.
Leave a Reply