The President Director of PT Bukit Asam (Persero) Tbk (PTBA), Bambang\nIsmawan, has called on the government to ensure fairness in regulating\nthe allocation of coal supply obligations for domestic interests, known\nas the Domestic Market Obligation (DMO).<\/p>\n
This plea was prompted by perceived inequities in DMO allocation\nbetween the state-owned enterprise and other coal producers. He noted\nthat PTBA\u2019s DMO realisation in 2025 reached 54% of the company\u2019s total\ncoal sales, a figure far higher than the mandated 25% DMO\nrequirement.<\/p>\n
\u201cThis is the issue we have faced regarding DMO. I have stated this\nduring my hearings with Commission XII of the House of Representatives\n(DPR): \u2018Sir, our DMO for 2025 is 54%, even though the regulation states\n25%. I am asking for fairness; there should not be unequal treatment,\u2019\u201d\nhe said in Jakarta.<\/p>\n
He added that he had also reported this to the Minister of Energy and\nMineral Resources (ESDM), questioning why private companies were not\nbeing held to the same standard of compliance. \u201cUltimately, the Minister\nindicated that governance might be changed next year. This is what we\nhope for, so that things are fair. It is a shared responsibility.\nPersonal profit should not override obligations to the state; we must\nprioritise the nation first,\u201d he explained.<\/p>\n
The perceived injustice stems from the fact that coal prices for the\ndomestic market, particularly for energy and power generation needs, are\ncapped at a maximum of US$70 per tonne. Meanwhile, international coal\nprices have reached nearly double that limit.<\/p>\n
Currently, international coal prices are surging towards near-record\nhighs. According to Refinitiv, coal prices closed at US$151.05 per\nbarrel on Monday (5\/10\/2026), marking a 1% increase. This rise extends a\npositive rally, with prices climbing 3.2% over four consecutive days,\nreaching the highest level since 8 September.<\/p>\n
According to PTBA data, the company\u2019s coal sales throughout 2025\nreached 45.4 million tonnes. The company\u2019s DMO supply during 2025 was\nrecorded at 24.5 million tonnes, or 54% of total sales. Had the 25% DMO\nregulation been strictly followed, the company should have only supplied\n11.8 million tonnes to the domestic market.<\/p>\n
During the first half of 2026, PTBA sold 21.10 million tonnes of\ncoal, with the realised DMO allocation recorded at 9.4 million tonnes.\nPTBA\u2019s coal production is estimated to reach approximately 49.5 to 50\nmillion tonnes by the end of this year.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ptba-ceo-calls-for-fairness-in-domestic-coal-allocation-1791298337", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }