PTBA Welcomes Government Plan to Raise DMO Coal Price

PT Bukit Asam Tbk (PTBA) has welcomed the government’s plan to revise the Domestic Market Obligation (DMO) coal price, currently set at US$70 per tonne for the electricity sector. “As a State-Owned Enterprise (SOE) and a publicly listed company, PTBA in principle welcomes the government’s plan to review and raise the DMO coal price,” said PT Bukit Asam (Persero) Tbk Corporate Secretary Division Head Eko Prayitno when contacted in Jakarta on Tuesday (9/6/2026). The DMO coal price for the electricity sector has remained unchanged at US$70 per tonne since 2017. According to Eko, this price requires a review given that production costs have evolved over recent years. From a financial performance perspective, Eko continued, PTBA views the DMO price increase as having the potential to positively impact the company’s revenue and profitability. As one of the main coal suppliers for domestic needs, particularly for power plants, PTBA sells a portion of its production at the DMO price, which is lower than the market price. As of May 2026, PTBA had supplied coal for national electricity provision to entities such as PT PLN (Persero) and independent power producers (IPPs), amounting to approximately 48 percent of its total assignment for the full year 2026. “If the DMO price is adjusted to current production costs, the company’s average selling price (ASP) will increase, thereby improving profit margins and supporting the company’s revenue growth,” Eko stated.