Association calls on govt to impose 'domestic market obligation' for coal

Indonesia Coal Mining Association (APBI) called on the government to require coal producers to set aside between 30 percent and 40 percent of their production to fulfill domestic needs, Bisnis Indonesia Daily reported on Wednesday.

 

Chairman of the association Jeffrey Mulyono said the so-called Domestic Market Obligation (DMO) is needed to anticipate a possible shortage of domestic supply due to the rising exports.

 

He said ideally, the country's coal export should be flat at 150 million tons in 2009 given the fact that domestic demand continued to rise.

 

"However, if there isn't any clear mechanism (to boost the coal supplies to the domestic market), exports will be higher and there will a be shortage of supply on the domestic market. That's why DMO is needed, " Jeffrey was quoted as saying early this week. (*)