Why Is Coal Industry Asking for DMO Price Increase?

By Editorial Team 27/12/2021
Summary

The Indonesia Coal and Energy Suppliers Association (Aspebindo) asks the government to increase the domestic market obligation (DMO) coal price for the electricity sector to US$90 per metric ton due to the price disparity between the government and market prices. Aspebindo chairman Anggawira said that the association would submit the proposal to the Energy and Mineral Resources Ministry early next year.

Anggawira explained that the gap between export and domestic prices was quite big. On the other hand, the Energy and Mineral Resources Ministry has set the coal price ceiling for the domestic cement industry to US$90 per metric ton. "Maybe the price must be improved. If possible, the DMO coal prices between non-electricity and electricity sectors should be the same," Anggawira suggested on Friday. A more competitive DMO coal pricing will create a more conducive business climate.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

Sign up
Log in
What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly 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…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.