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