PTBA Requests Review of Coal DMO Price

Jakarta (ANTARA) - PT Bukit Asam Tbk (PTBA) hopes that the government can review the current Domestic Market Obligation (DMO) coal price policy, which has been in place since 2017. PTBA President Director Arsal Ismail stated that the coal price for DMO needs remains at $70 per tonne since it was implemented in 2017. “Meanwhile, other costs (operational expenses) have increased,” Arsal said during a hearing with Commission VI of the House of Representatives (DPR RI) in Jakarta on Tuesday. In addition to the DMO price issue, Arsal also requested policy support from the government to support coal downstreaming, including the provision of fiscal incentives such as tax relief, ease of permitting, priority access to supporting infrastructure, as well as financing and investment facilities. Furthermore, PTBA requested support for eradicating unlicensed mining that re-emerges when coal prices rise. Arsal explained that the number of illegal mining sites had indeed decreased since the establishment of the illegal mining eradication task force, from 81 sites last year to far fewer. However, he noted that when coal prices rise again, illegal mining activities start to reappear. “Even if it’s just one or two, the impact is still on us to resolve (if there are problems) as the holders of the mining business licence (IUP),” he said. “The data is complete, the people involved are already known to us, it’s just a matter of willingness to eradicate them,” he added. In addition, Arsal conveyed that the company continues to strive to increase production capacity towards 100 million tonnes, one of which is through the Musi River logistics route in South Sumatra. This river route serves as the backbone for transporting coal from mines to ports. He mentioned that currently, coal transportation operations on the Musi River only run for 12 hours a day, and PTBA hopes for support to increase it to full 24 hours so that distribution is more efficient and production targets can be achieved.