MEMR revises coal DMO regulation

The Ministry of Energy and Mineral Resources (MEMR) is currently in the process of revising MEMR Regulation No 34/2009 on coal domestic market obligation (DMO) policy, Kontan daily reported on Friday.

The paper quoted Edi Prasodjo, coal chief at the ministry, as saying that under the planned new regulation, not all coal miners in the country will be imposed with the DMO. It will only be imposed on those whose products meet the required specifications.

Edi declined to provide details as the ministry was still at the stage of drafting the policy, and has just started talks with coal miners to garner input.

Under the current DMO regulation, coal miners in the country are obliged to allocate part of their output to fulfill domestic demand based on quota set by the MEMR every year. But not all miners have been able to meet the DMO, in some cases because their output does meet the specifications required by domestic power plants, the largest coal consumer in the country. (*)