Indonesian Political, Business & Finance News

Government strengthens oversight of coal DMO obligations

| Source: ANTARA_ID Translated from Indonesian | Energy
Government strengthens oversight of coal DMO obligations
Image: ANTARA_ID

The Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources (ESDM) is continuously strengthening oversight of the implementation of the domestic market obligation (DMO) for coal commodities, covering both the electricity and non-electricity sectors.

Director General of Minerals and Coal Tri Winarno stated that to meet state-owned electricity company PT PLN’s (Persero) coal requirement of 154 million metric tonnes in 2026, the directorate general has assigned mining business entities that already possess work plans and budgets (RKAB) a total volume of 212 million metric tonnes.

According to him, this assignment represents the government’s measure to ensure the adequacy and sustainability of coal supply for PLN’s coal-fired power plants (PLTU).

“The Directorate General of Minerals and Coal periodically monitors compliance with DMO implementation, both for the electricity and non-electricity sectors. To meet PLN’s requirement of 154 million metric tonnes, we have assigned mining business entities a total volume of 212 million metric tonnes,” Tri emphasised.

As of May 2026, a total of 144 million metric tonnes of the assignment has been contracted, with estimated delivery realisation reaching 130.5 million metric tonnes.

“Contracts form the basis for executing coal deliveries to the PLTU. Therefore, we continue to encourage PLN EPI (Energi Primer Indonesia) to accelerate the contracting process so that the assignments given can be promptly realised into deliveries,” he said.

Tri added that the directorate general continues to coordinate with PLN EPI and mining business entities to ensure coal supplies to power plants are delivered on time, in the correct volume, and meet specifications.

“The government continues to ensure that PLN’s coal requirements for the second half of 2026 can be met according to schedule and power plant specifications. For this reason, coordination and acceleration of contract finalisation must continue,” he stated.

According to Tri, through strengthened monitoring and contract acceleration, the Ministry of ESDM is committed to maintaining the reliability of coal supply for the national electricity sector and ensuring DMO implementation proceeds consistently and measurably.

View JSON | Print