Will the 155 Million Tons of Coal DMO Target be Achieved?

Summary

The realization of coal domestic market obligation (DMO) reached only 16.37 million tons as of March 2020, or 10.56 percent of this year's target set by the Energy and Mineral Resources Ministry at 155 million tons. Some 109 tons of the goal would be used as fuels for power plants owned by PT Perusahaan Listrik Negara (PLN), 16.52 million tons are for the processing and refinery industry, and the rest for other sectors such as fertilizer and cement.

The Energy and Mineral Resources Ministry's Coal Business Development Director Sujatmiko believes that coal miners can fulfill the DMO target despite pressure on the domestic economy due to the Covid-19 pandemic. Mining companies that cannot meet the DMO will subject to sanctions or compensation payments for the lack of domestic coal sales totaling the DMO shortfall times the tariff based on exported coal quality.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and monthly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.