Avoided yet Pursued: The Coal Domestic Market Obligation

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The priority of coal supply for Domestic Market Obligation (DMO) aimed to fulfill national energy needs.

DMO Policies are stipulated to implement the Presidential Decree (Perpres) 5/2006 on National Energy Policy in the realization of energy (primary) mix 2025 with 33% sourced from coal.

Law (UU) 4/2009 on mineral and coal mining emphasizes the alignment to the national interest (article 2b); in order to support the sustainable national development, ensure the availability of mineral and coal as the material/energy resource for domestic needs (article 3c); designated for national interest by the government after consultation with Republic of Indonesia House of Representatives (DPR) (article 5 paragraph 1).

Regulations applied to support the mineral and coal mining law set the framework of annual DMO determination for mining companies, as Indonesian Government try to ensure the adequate supply of resources to fulfill the growth of domestic demand along with infrastructure investment.

 

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