PTBA CEO Calls for Fairness in Domestic Coal Allocation
The President Director of PT Bukit Asam (Persero) Tbk (PTBA), Bambang Ismawan, has called on the government to ensure fairness in regulating the allocation of coal supply obligations for domestic interests, known as the Domestic Market Obligation (DMO).
This plea was prompted by perceived inequities in DMO allocation between the state-owned enterprise and other coal producers. He noted that PTBA’s DMO realisation in 2025 reached 54% of the company’s total coal sales, a figure far higher than the mandated 25% DMO requirement.
“This is the issue we have faced regarding DMO. I have stated this during my hearings with Commission XII of the House of Representatives (DPR): ‘Sir, our DMO for 2025 is 54%, even though the regulation states 25%. I am asking for fairness; there should not be unequal treatment,’” he said in Jakarta.
He added that he had also reported this to the Minister of Energy and Mineral Resources (ESDM), questioning why private companies were not being held to the same standard of compliance. “Ultimately, the Minister indicated that governance might be changed next year. This is what we hope for, so that things are fair. It is a shared responsibility. Personal profit should not override obligations to the state; we must prioritise the nation first,” he explained.
The perceived injustice stems from the fact that coal prices for the domestic market, particularly for energy and power generation needs, are capped at a maximum of US$70 per tonne. Meanwhile, international coal prices have reached nearly double that limit.
Currently, international coal prices are surging towards near-record highs. According to Refinitiv, coal prices closed at US$151.05 per barrel on Monday (5/10/2026), marking a 1% increase. This rise extends a positive rally, with prices climbing 3.2% over four consecutive days, reaching the highest level since 8 September.
According to PTBA data, the company’s coal sales throughout 2025 reached 45.4 million tonnes. The company’s DMO supply during 2025 was recorded at 24.5 million tonnes, or 54% of total sales. Had the 25% DMO regulation been strictly followed, the company should have only supplied 11.8 million tonnes to the domestic market.
During the first half of 2026, PTBA sold 21.10 million tonnes of coal, with the realised DMO allocation recorded at 9.4 million tonnes. PTBA’s coal production is estimated to reach approximately 49.5 to 50 million tonnes by the end of this year.