MEMR grants 100% coal quotas to PKP2B Gen-1 and SOEs

By Pandu Setiabudi

The Ministry of Energy and Mineral Resources (MEMR) has granted 100% production quotas to first-generation PKP2B coal miners and state-owned mining companies (SOEs) holding IUP licenses, on the condition that they allocate at least 30% of their output upfront for the Domestic Market Obligation (DMO) to supply state utility PLN.

Director General of Minerals and Coal Tri Winarno said the policy is aimed at safeguarding domestic coal supply for the power sector amid the government’s plan to lower national coal production in 2026.

“For first-generation PKP2B and SOE IUP holders, we grant them 100%. In return, we ask that at the beginning they pull forward at least 30% to supply PLN. Only PLN,” Tri said at the Directorate General of Minerals and Coal office on Tuesday (Feb. 10).

He added that as approvals for other companies are issued, 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.

Read also: Coal DMO likely to exceed 30%, MEMR says

The government has signaled that the DMO percentage this year could exceed 30%, following a planned reduction in coal production to around 600 million tonnes in 2026 from 790 million tonnes in 2025. Deputy Energy and Mineral Resources Minister Yuliot Tanjung previously said the lower output target would “inevitably” push up the DMO share to ensure domestic demand is met.

Under current regulations, coal miners are required to allocate at least 25% of production to the domestic market. However, with PLN’s coal requirement estimated at around 240 million tonnes, lawmakers have urged the ministry to raise the DMO to 30% if production is capped at 600 million tonnes.

Tri confirmed that DMO recipient sectors and pricing remain unchanged for now.

“It follows the regulations stipulated in the law, namely national electricity, cement, and other strategic industries. As for pricing, there has been no change so far,” he said.

From the industry side, FH Kristiono of the Indonesian Mining Professionals Association (PERHAPI) said miners have proposed that the government exclude non-SOE companies and non-public service obligation (PSO) users—such as private cement producers—from eligibility for DMO-priced coal.

Meanwhile, regarding reductions in approved Work Plan and Budget (RKAB) volumes for 2026, Tri said the figures are not yet final. Companies are still allowed to seek evaluations or revisions before approvals are formally issued.

The ministry has also cautioned miners against overly aggressive production, warning that excessive output could depress prices and reduce state revenue, as the government seeks to balance domestic energy security with fiscal and market stability.

Editing by Reiner Simanjuntak