Regarding Coal DMO, Kadin: Non-Negotiable, Absolute

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry, Arsjad Rasjid, emphasized that the domestic market obligation (DMO) policy is non-negotiable and absolute for all coal companies. According to him, those who violate must be punished.

Arsjad said Kadin fully supports President Joko Widodo's direction to immediately find the best solution for the national interest. Regarding coal supply, the priority is to fulfill domestic needs for PLN and domestic industry.

"Regarding the supply of coal to meet the needs of PLN and IPP power plants, in line with the President, the DMO mechanism is a principle that coal companies must continue to adhere to, this is non-negotiable and absolutely complied with. Those who violate must receive appropriate sanctions, even revoke export licenses and if necessary business permits," he said in a written statement received by VOI, quoted Wednesday, January 5.

According to Arsjad, all stakeholders related to the problem of domestic coal supply must seek a cool-headed solution.

"The Ministry of Energy and Mineral Resources and SOEs, PLN and entrepreneurs need to sit down together to find the best solution, so that this does not become an annual problem and can know very well what problems are actually faced by PLN in an effort to meet the coal needs of PLN as a whole," he said.

Arsjad said as a partner of the government and entrepreneurs, his party is ready to support long-term policies to maintain Indonesia's business reputation in the eyes of the world. He hopes that the government and business actors will jointly find the best solution to the current problems.

"Kadin Indonesia as an equal and strategic partner of the government always supports the policies and regulations issued by the government. We hope that there will be consistency in policies for long-term solutions to maintain Indonesia's reputation internationally," he said.

Previously, President Joko Widodo reminded private companies, state-owned companies and subsidiaries engaged in mining, plantations and natural resource processing that they must first meet domestic needs before exporting.

This is in line with the constitutional mandate of Article 33 Paragraph 3 of the 1945 Constitution that the earth, water and natural resources contained therein are controlled by the state and used for the greatest prosperity of the people.

This statement is intended as an answer to the coal supply crisis at the PLTU Group PLN and Independent Power Producer (IPP) as stated in letter number B-1605/MB.05/DJB.B/2021 issued by the Ministry of Energy and Mineral Resources on December 31, 2021, and addressing the domestic supply of LNG, especially to PLN and ensuring the stabilization of domestic cooking oil prices.