DMO Regulation Squeezes Local Coal Miners

By Editorial Team 13/09/2019
Summary

The government policies on domestic market obligations (DMO) are squeezing local coal miners amid the low global coal prices, due to limited domestic buyers purchasing power. As a result, they are competing to fulfill the DMO to avoid sanctions of production quota cuts.

According to the Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia, the DMO is hampering companies that have not owned a sales contract with PT PLN. Undoubtedly, the largest domestic coal buyers are the Steam Power Plant which mostly managed by PLN. Besides the difficulty of supplying coal to the power plant, producers could also suffer losses if they have to sell coal to a power plant at a specified price of US$ 70 per ton.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

Sign up
Log in
What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.