Bukit Asam CEO Requests Government to Review Coal DMO Price

PT Bukit Asam Tbk (PTBA), a coal mining company, has requested that the government re-evaluate the Domestic Market Obligation (DMO) coal price policy, which it deems no longer relevant to current conditions. The company’s management believes that the stagnant price since 2017 no longer aligns with the increase in operational costs.

PTBA’s President Director, Arsal Ismail, stated that the coal price for domestic needs is still set at US$70, or approximately Rp1.18 million (estimated exchange rate of Rp16,990 per US dollar) per tonne. This price has remained unchanged for nearly a decade.

“Meanwhile, other costs (operational expenses) have increased,” said Arsal, quoted from Antara on Tuesday, 31 March 2026.

The company’s management also encourages the government to accelerate the coal downstreaming programme. Specifically, Arsal emphasised the importance of fiscal incentives such as tax relief, ease of permitting, infrastructure access, and support for financing and investment.

Arsal also highlighted the resurgence of illegal mining activities amid rising coal prices. He acknowledged that the number of illegal mines had decreased due to the formation of a special task force, but they are now re-emerging.

“Even if it’s just one or two, the impact is still on us to resolve as the IUP holders,” added Arsal.

He further noted that the company has obtained complete data on these illegal mining activities and has reported them to law enforcement authorities and the central government. However, he believes that firm action on the ground is still very much needed.

“The data is complete, the people involved are known to us; it’s just a matter of willingness to eradicate them,” Arsal stressed.

On the operational side, PTBA is also continuing to strengthen production capacity with a target of reaching 100 million tonnes. One of the main strategies is through optimising the Musi River logistics route in South Sumatra, which serves as the primary coal distribution route.

Currently, transport operations on the Musi River run for only 12 hours per day. The company hopes the government can provide support to increase operations to a full 24 hours.

This step is seen as important to improve distribution efficiency while supporting the company’s production targets amid high global coal demand.