DMO not fair enough: Official

By Adianto P. Simamora

The Energy and Mineral Resources Ministry admitted that the implementation of the domestic market obligations (DMO) is not fair enough as it only binds coal miners holding coal contract of work, better known as PKP2B.

The Ministry?s Minerals and Coal Director General Thamrin Sihite said that many of coal miners holding mining business permits from local administrations did not report its annual total production to Jakarta.

?We don?t have data on actual coal production of many of the local coal companies and that situation means that in actuality the implementation of the DMO effectively applies only to the PKP2B?s holders. I think it is not fair and we need to review it,? he said.

Thamrin said that many Governors and Regents did not report the mining permits issued by the administration to Jakarta. ?Many regents and governors do not report all of the mining permits issued (in their respective areas). We don?t know their reasons but we believe that the issuance of such mining permits violates the 2009 mining law,? he said.

Under the DMO scheme, the coal miner is required to set aside certain percentage of its annual production to supply the domestic demand. The policy was made to avert the shortage sources of energy in the country.

Editing by David Mustakim