75 Coal Ships Full Of DMO Ready To Sail

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has lifted the export ban for 75 transport vessels that have met the 100 percent Domestic Market Obligation (DMO) requirements.

The Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, in a press conference on the performance of the Minerba sector said his party had given the permit after conducting an evaluation meeting with both PLN and the ministry regarding domestic coal stocks before granting export permits.

"So there have been 75 ships from companies that have fulfilled their DMO obligations as much as 100 percent," he said, Thursday, January 20.

In addition to 75 ships that have performed 100 percent of their obligations, Ridwan also detailed that there are 12 transport ships that have not fulfilled their 100 percent DMO obligations but have provided a statement that they will fulfill their obligations.

"We ask them to write a statement that they will fulfill their obligations. Otherwise, we will impose sanctions," continued Ridwan.

Not only that, there are also 9 transport ships belonging to traders who are also free to export considering that traders do not have a 25 percent DMO obligation.

Previously, the Ministry of Energy and Mineral Resources banned the sale of coal abroad on January 1-31 and required mining companies to supply all coal production for domestic needs, especially to 17 PLTU owned by PLN which experienced a coal supply crisis.

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has also provided conditions for companies wishing to export, namely:

1. Fulfill the sales contract to PLN and its DMO obligation of 100 percent in 2021.

2. Coal companies that already have a contract with PLN but have not fulfilled their contractual obligations and the DMO for 2021, must fulfill the penalty obligation in accordance with the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021. The calculation value of the fine will be applied from the date of the issuance of the Ministerial Decree.

3. Coal companies whose coal specifications do not meet the specifications of PLN's needs or do not have a contract with PLN in 2021 will also be subject to a fine with the same mechanism as in the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021. The fine will be calculated based on the volume of DMO allocation given to each of these companies.