Coal DMO Realization 31.53 Million Tonnes in Quarter I, Govt Optimistic about Domestic Demand for 2020

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 150.Pers/04/SJI/2020

Date: 9 April 2020

Coal DMO Realization 31.53 Million Tonnes in Quarter I, Govt Optimistic about Domestic Demand for 2020

Ministry of Energy and Mineral Resources (EMR) is optimistic that all domestic demand for coal will be covered by national production, despite declining demand resulting from slow industrial operation due to the Covid-19 global pandemic.

Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR, Agung Pribadi, says the realization of Domestic Market Obligation (DMO) in the first quarter reached 31.53 million tonnes or 20% or the DMO target in 2020. Meanwhile, total national production in the first quarter was 143 million tonnes.

"The Covid-19 pandemic has indeed lowered coal demand from industries. However, the realization volume has covered domestic demand," said Agung, Thursday (9/4).

The DMO realization, Agung details, is allocated to electricity supply (State Utility Company/PLN) of 25.6 million tonnes. Domestic coal demand for non-electricity, general sectors is 5.93 million tonnes. "The volume can cover demand from both PLN and non-electricity, general sectors," Agung asserted.

The government has targeted the coal DMO of 2020 at 155 million tonnes. Agung explains that the threat of coal price correction on the global market is believed to start affecting domestic coal production and sales. "If the Covid-19 pandemic still continues, domestic demand for coal is estimated to be lower by 5%," said Agung.

The government has set the selling price of coal for general electricity at USD70 per ton in 2020. Meanwhile, the selling price of coal for other industries in the country refers to the Coal Benchmark Price (HBA) determined by the government on a monthly basis. "The April HBA was set at USD65.77 per ton or down by USD1.31 per ton than the previous month at USD67.08 per ton," said Agung.

However, the government ensures it will cover the coal demand of various domestic industries from domestic production despite the pandemic. This is because coal production still meets the set plan that there is still ample supply. (IY)

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

Agung Pribadi (08112213555)

Share This!