Indonesian Govt Prioritizes Coal for Domestic Use

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 007.Pers/04/SJI/2021

Date: 8 January 2021

Indonesian Govt Prioritizes Coal for Domestic Use

In 2020, domestic use of coal in Indonesia, or Domestic Market Obligation (DMO), reached 132 million tonnes out of production 558 million tonnes. The Indonesian Government has continued to encourage the domestic use of coal, for example by converting coal into Dimethyl Ether (DME) which is a substitute for LPG.

"The coal DMO target for 2021 is 137.5 million tonnes out of production target 550 million tonnes," said Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, at the Press Conference on Performance Report of 2020 and Work Plan for 2021 of the EMR Sector on Thursday (7/1).

The increase of 5.5 million tonnes in coal DMO has been set out in the strategic program and policies of the EMR sector for 2021.

"Namely, the policy to accelerate the increase in coal added value and fulfillment of domestic demands," continued Arifin.

To promote downstream coal processing, the government has provided business actors with 0% royalty, especially to businesses that increase coal added-value.

For the record, Indonesia's coal reserves are relatively higher than the country's reserves of oil and gas, so there is an abundant amount of coal that can be processed into DME to substitute LPG. (IY)

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

Agung Pribadi (08112213555)

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