ESDM Finalizes New Ministerial Decree on Coal DMO

The Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral – “ESDM”) is preparing a Ministerial Decree (Keputusan Menteri – “Kepmen”) concerning the fulfillment of domestic coal needs and the coal production target plan. The new Kepmen regulates the fulfillment of domestic coal needs through the Domestic Market Obligation (“DMO”) scheme.

“The Kepmen is currently still under process,” stated Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Mineral and Coal, to Hukumonline.

In addition to the DMO scheme, the new decree will also stipulate the number of obligations and their implementation mechanisms for mining business entities. Rita confirmed that the DMO will be adjusted to domestic needs and aligned with the adjustment of this year’s coal production target.

The Legal Coordinator of the Directorate General of Mineral and Coal, Slamet Riyadi, ensured that the completion of the new Kepmen will not take long. The internal discussion process has been completed and is now entering the finalization stage.

“The draft will be submitted for finalization,” he added.