The Ministry of Energy and Mineral Resources (ESDM) reported that the realization of coal production until October 2021 reached 512 million tons or 82% of the target of 625 million tons. Meanwhile, the realization of the Domestic Market Obligation (DMO) of coal until October 2021 reached 110 million tons or 80% of the target of 138 million tons. The realization of coal exports reached 367 million tons or 75% of the target with a value of USD 4.2 billion until October 2021. "There is still 2 months time which we estimate that by the end of the year we will reach approximately 96% of this DMO target," said Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Ridwan Djamaluddin in a Hearing Meeting (RDP) with Commission VII DPR RI, Monday (15/11/2021).
Ridwan said there were several problems in the implementation of the coal DMO. First, a 25% DMO obligation is imposed on all mining business entities holding production operations. Meanwhile, not all mining companies have coal specifications that meet domestic needs. "So the company is obliged, but its obligations cannot be applied immediately because the coal produced is not in accordance with the needs," he said. Also Read: Official! Indonesia and 22 Countries Agree to Leave Coal Second, although it has coal specifications that meet the needs, it cannot be fully absorbed domestically.
Third, domestic coal consumption is not as high as the national production level, so not all companies have the opportunity to contract sales with domestic coal users. "So the production is more than what is needed, so to catch up to 25% there is a separate issue," said Ridwan. He added, to answer the problem, his party is conducting in-depth discussions and discourses to increase the DMO obligation to 25%. "Technically, we encourage PLN or other companies to build coal liquefaction facilities managed by private companies and state-owned enterprises to process coal specifications so that they can meet domestic needs," he said.
Sources: https://economy.okezone.com/read/2021/11/15/320/2502055/produksi-batu-bara-indonesia-tembus-512-juta-ton?page=2
