Coal DMO Reaches 51.8 million Tonnes until May 2021, Says Director General

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 194.Pers/04/SJI/2021

Date: 8 June 2021

Coal DMO Reaches 51.8 million Tonnes until May 2021, Says Director General

The DMO has reached 51.8 million tonnes in May 2021, Director General of Mineral and Coal of the Indonesian Ministry of Energy and Mineral Resources (EMR), Ridwan Djamaluddin, reported to Commission VII of the House of Representatives of the Republic of Indonesia (DPR RI) in a Hearing (RDP) held in Jakarta on Monday (7/6).

The 51.8 million tonnes of realized DMO is 37.7 percent of this year's 137.5 million tonnes target, so the Ministry of EMR is optimistic that Domestic Market Obligation (DMO)--part of coal production that must be sold to the domestic market--of 2021 will be met.

Ridwan also reported that the realized coal production reached 237 million tonnes between January and May 2021. This is about 38 percent of this year's production target which is set at 625 million tonnes.

Ridwan went on to say that extreme weather and natural disasters at the beginning of this year were some challenges faced by mining companies in carrying out their operations. "Challenges faced by business entities include weather conditions and natural disasters in early 2021," he said.

The government previously decided to increase the coal production quota by 75 million tonnes to 625 million tonnes. Initially, this year's coal production quota was set at 550 million tonnes. The increase is set out in Decision of Minister of EMR Number 66.K/HK.02/MEM.B/2021 on Amendment to Decision of Minister of Energy and Mineral Resources Number 255.K/30/MEM/2020 on Fulfillment of Domestic Coal Needs for 2021.

However, this additional production is prioritized for overseas sales and is exempt from domestic sales.

The ministerial decision says that the Corona virus pandemic has impacted the mining sector in 2020 due to fewer economic activities globally. This condition has prompted the government to increase coal production in 2021 for overseas sales. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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