Govt sets 75 million tonnes DMO quota for PKP2B, SOE coal miners
Friday, February 13 2026 - 07:33 AM WIB
By Calvin Purba
Indonesian Ministry of Energy and Mineral Resources (MEMR) has set a Domestic Market Obligation (DMO) allocation of 75 million tonnes for first-generation PKP2B coal miners and state-owned mining companies (SOEs) that were granted full production quotas for 2026.
Director General of Minerals and Coal Tri Winarno said the allocation is part of the government’s effort to secure coal supply for state electricity utility PLN.
“PKP2B and SOEs are expected to supply 75 million tonnes,” Tri said on Thursday (Feb. 12).
The ministry has instructed the companies to front-load their DMO commitments in the first semester to ensure PLN’s supply security amid a planned reduction in national coal output.
“We are pulling that (DMO) into the first semester so PLN can secure supply first,” he said.
Read also: MEMR grants 100% coal quotas to PKP2B Gen-1 and SOEs
As previously reported, the government plans to cut Indonesia’s coal production quota to around 600 million tonnes in 2026, down from 790 million tonnes in 2025, in a bid to support global coal prices.
However, first-generation PKP2B holders and SOE miners holding IUP licenses were spared from the production cuts and granted 100% of their proposed 2026 quotas. In return, they are required to allocate at least 30% of their output upfront to meet DMO requirements, specifically to supply PLN.
“For first-generation PKP2B and SOE IUP holders, we grant them 100%. In return, we ask that at the beginning they allocate at least 30% to supply PLN. Only PLN,” Tri said earlier on Tuesday (Feb. 10).
He added that as approvals for other companies’ 2026 Work Plan and Budget (RKAB) are processed, DMO supply will gradually be sourced from a broader group of producers.
“Later, as approvals for other companies are processed, we will also gather supply from them,” he said.
The policy forms part of the government’s broader strategy to balance domestic energy security with efforts to stabilize coal prices and safeguard state revenues.
Editing by Reiner Simanjuntak