Bahlil Potentially Raises The Amount Of Coal DMO By More Than 25 Percent

Minister of Energy and Mineral Resources Bahlil Lahadalia (Photo: Doc. VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia opens the opportunity to increase the ratio of the Domesti Market Obligation (DMO) to more than 25 percent.

Just so you know, DMOrupts the obligations of coal companies holding Mining Business Permits (IUP), Special Mining Business Permits (IUPK), and Coal Mining Concession Work Agreements at the production operation stage to meet domestic coal needs to PT PLN (Persero).

For information, based on the Ministerial Regulation (Permen) of Energy and Mineral Resources Number 9 of 2023 concerning the Strategic Plan of the Ministry of Energy and Mineral Resources, the price of coal DMO for PLTU owned by PLN is set at 70 US dollars per ton, while the industry is 90 US dollars per ton.

According to him, so far many coal entrepreneurs have not been serious in carrying out their DMO obligations.

"Abuleke is also partly this. Yes, I know there are games. I have informed the Director General," Bahlil said at the DPR Commission XII Working Meeting, Tuesday, November 11.

For this reason, the General Chairperson of the Golkar Party opened the option to revise the amount of DMO by more than 25 percent of total production.

"I agree that DMO must be clear, even in the future we will revise the RKAB DMO, maybe not 25 percent, it could be more than that. The interests of the country above all else," said Bahlil.

Regarding DMO, previously coal entrepreneurs had also asked to increase the price of coal sold through the DMO scheme.

The Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Tri Winarno, said the change in DMO prices would affect the amount of subsidies.

For that, he said, what is most likely to be adjusted is the coal DMO mechanism for electricity.

Regarding the price complaint from entrepreneurs, Tri admitted that it was natural for entrepreneurs to ask for an increase in price for the company's profits.

"If you buy (want) the cheapest price, that's it. Be reasonable. Requests are reasonable," continued Tri.

Regarding the progress of the formation of a coal Management Agency Partner (MIP) or a channel levy scheme, Tri said, his party is still reviewing so that the benefits can be felt by all parties

The reason is, this MIP will provide compensation for the difference in coal prices for entrepreneurs.