JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia opened the opportunity to cut coal export rations by increasing the percentage of Domestic Market Obligations (DMO) to more than 25 percent.
"DMO must be clear. In fact, in the future we will revise the RKAB (Business Plan and Budget), the DMO may not be 25 percent, it could be more than that," said Bahlil as quoted by ANTARA, Tuesday, November 11.
The rules regarding coal DMO are contained in the Decree of the Minister of Energy and Mineral Resources Number 399.K/MB.01/MEM.B/2023 concerning Amendments to the Decree of the Minister of Energy and Mineral Resources Number 267.K/MB.01/MEM.B/2022 concerning Fulfilling Domestic Coal Needs.
The government has set a percentage of coal sales for domestic needs (domestic market obligation) of 25 percent of the realization of coal production in the current year.
The regulation applies to holders of Mining Business Permits (IUP) for Coal Production Operations, Special Mining Business Permits (IUPK) for Coal Operations, and the Coal Mining Concession Work Agreement for the Production Operation stage.
As many as 25 percent of the realization of coal production is used to meet the needs of providing electricity for the public interest and its own interests; as well as raw/fuel materials for industry.
In addition, the government is also still setting a special Domestic Price Obligation (DPO) for PT PLN (Persero) to supply coal for power plants of US$70 per ton.
Then, on September 11, 2025, the government stipulated Government Regulation of the Republic of Indonesia Number 39 of 2025 concerning the Second Amendment to Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.
In Article 157 PP 39/2025, it is regulated regarding the obligations of IUP holders or IUPK stages of production operations to meet domestic mineral and/or coal needs and prioritize the fulfillment of SOE needs in sectors that control the lives of many people.
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The sectors in question are electricity, energy supply, fertilizer, and national strategic industries.
Paragraph (3) Article 157 PP 39/2025 states that the obligation to prioritize fulfillment is carried out by prioritizing coal fulfillment before selling abroad/exports.
"The interests of the state above all else," said Bahlil.
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