JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) is reviewing the addition of the Domestic Market Obligation (DMO) of coal starting in 2026.
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, confirmed that even though it would increase the amount of DMO, the government would not increase the price set by 70 US dollars per ton.
"It's still (the price)," Bahlil told the media crew at the Ministry of Energy and Mineral Resources Building, Friday, November 14.
The chairman of the Golkar Party said that the increase in the amount of DMO was still calculated by the Ministry of Energy and Mineral Resources and would depend on the amount of the 2026 Work Plan and Budget (RKAB) application.
He further explained that the consumption of coal by PLN for power plants per year is estimated at 140 million to 160 million tons. Later, the DMO results will be prioritized for power plants, the fertilizer and cement industries.
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Meanwhile, based on the prognosis for 2024-2026 by the Ministry of Energy and Mineral Resources, the RKAB of coal is estimated at 900 million tons, resulting in the unequal demand and supply of coal and an impact on prices. For this reason, the government has again evaluated the volume of coal produced by coal mining companies
"The world's coal needs are only 1.3 billion tons. We can supply up to 600 million tons, almost 50 percent. Finally, now the price of coal has dropped considerably," he said.
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