Indonesia’s domestic market obligation for coal reaches 51.8 million tons until May 2021

Jakarta (Indonesia Window) – Until the end of May 2021, the realization of Indonesia’s Domestic Market Obligation (DMO) for coal has reached 51.8 million tons or 37.7 percent of the target.

With that achievement, the Ministry of Energy and Mineral Resources confirms that domestic coal needs in 2021 will be fully fulfilled.

The government has set a target of 137.5 million tons for domestic coal needs throughout 2021.

Meanwhile, the realization of coal production in the same period reached 237 million tons. This figure is about 38 percent of the production target throughout 2021 which is set at 625 million tons.

Earlier, the Indonesian government decided to increase this year’s coal production quota by 75 million tons to 625 million tons, from that of 550 million tons.

The additional production is prioritized for sales to foreign markets and is not subject to an obligation for a percentage of coal sales for domestic needs.

The impact of the COVID-19 pandemic on the mining sector in 2020 reduced mining activities globally, pushing the government to increase the national coal production in 2021 for overseas sales.

Reporting by Indonesia Window