The Government of Indonesia through its Ministry of Energy and Mineral Resources ensures that domestic coal needs of 155 million tons (MnT) can be met. The Director General of Minerals and Coal at the ministry Bambang Gatot Ariyono said the policy to ensure the availability of domestic coal needs was contained in Minister of Energy and Mineral Resources Decree No. 261/2019 concerning Fulfilling 2020 Domestic Coal Needs.
“The need for coal for domestic interests of 155 million tons, has been confirmed has been fulfilled,” Bambang said in a press release on Sunday (3/15/2020).
The Ministerial Decree requires holders of Mining Operations (IUP) Production Operations (OP) for Coal, Special Mining Business Licenses (IUPK) for Coal OP, and Coal Mining Concession Work Agreements (PKP2B) to be obliged to sell their coal production. For the domestic market (Domestic Market Obligation/DMO) of at least 25 percent of the planned coal production in 2020.
“The government hopes that the realization of the DMO increases every year. So the use of coal for the domestic will be better, for that we provide and ensure that domestic coal needs must be met,” he said.
Bambang said that currently the DMO of 25 percent had no problems, even if it increased to 50 percent it would not cause problems, because national coal production currently reaches four times the DMO requirement.
“There is no problem, now we are only 25 percent, up to 50 percent, if even then there will be no problem, we produce four times the requirement for the DMO, the DMO must be fulfilled. There is no problem, we as the government ensure pro to the public, because coal for electricity is guaranteed to not exceed USD 70, so there is no DMO problem,” Bambang said.
The realization of coal production and sales has continued to increase from 461 MnT in 2015 to 616 MnT in 2019. While this year, production is set at 550 MnT. From the production target of 550 MnT, it is planned to export 395 MnT. Realization of production in the first quarter had reached 94.72 MnT, exports of 30.24 MnT and allocations for domestic needs amounted to 16.37 MnT.
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