Bisnis.com, JAKARTA – The government and the House of Representatives have designed the sales obligation for domestic market requirements or DMO (domestic market obligation) for coal to increase from 25 percent to 30 percent. This is done to prevent a shortage of domestic coal stocks.
This obligation is stated in article 6 paragraph 6 of the draft New and Renewable Energy (EBT) Law. The article states that to ensure the availability of primary energy to be used as a power plant (PLTU), the supply of coal for power plants is carried out by means of a coal sales mechanism for domestic needs or DMO with a minimum requirement of 30 percent of the planned coal production.
In addition, the highest price was set at US$70 per tonne with reference to coal with a calorific value of 6,322 kcl per kg. Meanwhile, the price of coal for industries other than smelters is set at US$ 90 per ton.
Responding to the draft, General Chairperson of ASPEBINDO (Indonesian Coal and Energy Suppliers Association) Anggawira did not object to this provision.
“The price [of coal] for energy of US$70 per tonne has long been set, so there is no need for further adjustments. As for the 30 percent DMO, I don’t think there is a problem, because it has been calculated in the RKAB [Work Plan and Cost Budget] prepared by IUP [Mining Business Permit] holders,” explained Anggawira to Bisnis, Monday (4/4/2022). ).
For this year, the Ministry of Energy and Mineral Resources is targeting a coal production plan of 663 million tons. From the production plan, the government set a DMO plan of 166 million tons of coal and 130 million tons of which will be supplied for power plants.
For the record, at the end of last week’s trading, coal prices closed up 0.26 percent at the level of US$ 252.00/ton. However, overall, in a week the price of coal fell 4.6 percent point to point. In a month, coal prices still rose slightly 0.2 percent and rose 174.2 percent over the year.
According to Anggawira, his party is still unable to predict the possibility of increasing and decreasing coal prices in the future.
“We can’t confirm whether the price of [coal] will go up/down. However, the price will remain high when compared to the Covid-19 pandemic,” concluded Anggawira.
