Jakarta, MINE – The Indonesian Coal Mining Association (APBI) responded to the discourse on increasing the domestic market obligation (DMO) portion of coal above 25%. His party stated that they were still waiting for an official decision from the government regarding the plan.
“Regarding the plan to increase the DMO portion, we are waiting for an official decision from the government,” said APBI Acting Executive Director, Gita Mahyarani when contacted by TAMBANG, Thursday (13/11).
Gita said, the most important thing about the discourse on increasing the DMO portion of coal is that its implementation must be carried out proportionally. In this way, domestic needs and community interests can be met without creating the risk of excess supply in the market.
“The most important thing is that this policy can be implemented proportionally, so that domestic needs and community interests are still met without creating a risk of oversupply in the market,” explained Gita.
In implementation, explained Gita, the price of coal for DMO needs is still set at USD 70 per ton for the electricity sector and USD 90 per ton for the cement and fertilizer sectors. These price conditions have been in effect since 2018.
According to Gita, in practice, amidst the current increase in production costs, business actors consider that price policies need to be reviewed so that they continue to reflect actual industry conditions.
“In implementation, the coal price for DMO has still been set at USD 70 per ton for the electricity sector and USD 90 per ton for the cement and fertilizer sector since 2018, while production costs have now increased,” he added.
“This is an important consideration so that policy implementation remains balanced and sustainable for all parties,” he explained.
The obligation to fulfill the domestic market obligation (DMO) for coal has been regulated in various laws and regulations. Through Government Regulation (PP) Number 39 of 2025, the government again emphasizes the importance of prioritizing coal supplies for domestic needs.
APBI stated that all its members will try to fulfill these provisions. Commitment to DMO, according to the association, is part of the collective responsibility of business actors to support national interests and maintain domestic energy security.
“APBI members will certainly try to fulfill these provisions, because DMO is part of a joint commitment to the national interest,” he concluded.
Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia opened the discourse on increasing the coal DMO quota to more than 25% which was conveyed at a Working Meeting with Commission XII DPR RI, in Jakarta, Tuesday, November 11 2025.
“In fact, in the future we will revise the RKAB DMO, maybe not 25%, it could be more than that, the interests of the state are above everything,” said Bahlil.
This discourse emerged after a member of Commission VII DPR RI from the Gerindra Party Fraction, Ramson Siagian, revealed findings that PT Bukit Asam Tbk (PTBA)’s DMO quota exceeded the threshold, reaching up to 55%. Responding to this, Bahlil confirmed that this condition occurred because coal prices on the global market were weakening, so sales were being pushed to the domestic market.
“So what Mr. Ramson said is true. But not all of it is true, because PTBA didn’t export yesterday because the price was falling, then he pushed it to PLN, and there are regulations on HBA that must be sold at the HBA price. We explained that there was no problem,” explained Bahlil.
Source: www.tambang.co.id
