ICMA predicts coal DMO to rise to 247 million tons in 2026
Saturday, November 29 2025 - 09:33 AM WIB
By Adianto P. Simamora
The Indonesian Coal Mining Association (APBI) has projected the country’s domestic coal requirement to reach 247.08 million tons in 2026, up 7.8 percent from the 2025 target of 229.3 million tons, driven by rising electricity and industrial demand.
The forecasted allocation is led by the electricity sector, which is expected to absorb 136.72 million tons, or 55 percent of the total Domestic Market Obligation (DMO). Non-electricity industries will account for the remaining 45 percent, with smelters allocated 84.24 million tons, a 13.5 percent increase compared to 2025.
Other key consumers include the cement sector, with an allocation of 12.12 million tons, and the pulp and paper industry, which is expected to consume 12.2 million tons. The fertilizer and textile sectors are projected to receive 1.28 million tons and 1.07 million tons, respectively.
Read also : Coal DMO reaches 134.6 million tons as of August, on track for 2025 target
It said that the 'other' category, representing smaller industrial users, is projected at 170,000 tons.
The data however shows no allocation was listed under the downstream category.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia earlier said that the government is considering increasing the DMO for coal producers beyond the current 25 percent threshold to strengthen domestic energy supply.
In 2024, Indonesia achieved 232.64 million tons in DMO realization, exceeding its target of 181.28 million tons by 28.3 percent.
According to APBI, the majority of this fulfillment was absorbed by coal-fired power plants (PLTU) at 57 percent, with the remainder distributed across smelters (30 percent), cement (4 percent), pulp and paper (3 percent), and other industries (6 percent).
Editing by Reiner Simanjuntak