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Realization of Domestic Market Obligation (DMO) Coal in 2021 Reached 133 Million Tons

Realization of Domestic Market Obligation (DMO) Coal in 2021 Reached 133 Million Tons

The realization of coal fulfillment obligations for the domestic market (DMO) as of December 2021 reached 133 million tons.

Referring to data from the Ministry of Energy and Mineral Resources, the realization of coal fulfillment obligations for the domestic market is equivalent to 96% of the target of 138 million tons. Meanwhile, total production in 2021 is planned at 625 million tons. The realization reached 614 million tons or equivalent to 98% of the target.

In addition, export volume reached 435 million tons or 89% of the target. This amount is worth US $ 31.6 billion.

Of the number of DMO in 2021, the largest consumption of the electricity sector reached 112.13 million tons. 11.39 million tons from the metallurgical and cement sector amounted to 4.45 million tons.

Energy Minister Arifin Tasrif said a number of regulatory reforms related to DMO had been carried out by the government. "To ensure domestic supply and maintain compliance with coal allocation has been carried out several DMO policy updates," Arifin said in a working meeting with the House of Representatives Commission on Thursday, January 13, 2022.

There are three provisions of DMO that are still being continued, namely the special price of coal for power plants of US $ 70 per ton, DMO is imposed on all companies and a minimum percentage of DMO is 25% of production.

Meanwhile, sanctions in the form of production reductions of 4 times the realization of DMO for those who cannot meet the DMO are now replaced. Coal companies that are unable to comply, are subject to DMO compensation payment obligations and additional sanctions in the form of production reductions up to the revocation of permits for those who violate domestic supply contracts.

For the DMO policy 2020-2021 there are two provisions that are removed, namely quota transfer for those who cannot meet the DMO and the reward of increasing production for those who can meet the DMO. For business entities that have fulfilled the DMO, can adjust their production capacity according to their capabilities.

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