Coal companies ensure that the commitment to fulfill domestic coal or the Domestic Market Obligation (DMO) continues.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia explained, the commitment of member companies in supplying coal to the country is going well.

"So far the company's commitment is good, the Operational Day (HOP) of the PLN generator is reportedly also within safe limits," explained Hendra to Kontan, Sunday (16/7).

Hendra emphasized that in the remainder of this year his party hopes that the coal MIP scheme can be completed.

Plt Director General of Minerals and Coal Muhammad Wafid revealed, so far there has been no recent development of the formation of MIP Coal.

However, the government guarantees that coal companies' DMO commitments are fulfilled.

"Everyone hopes that (MIP will be completed), what is clear is that the government has an interest in guaranteeing DMO. So far it is safe for PLN's supply," said Wafid when met at the Ministry of Energy and Mineral Resources Building, Monday (17/7).

Meanwhile, Director & Secretary of PT Bumi Resources Tbk ( BUMI ) Dileep Srivastava explained, his party has no plans to change the coal production target for this year which is in the range of 75 million tons to 80 million tons.

In addition, it is ensured that DMO commitments continue to be fulfilled. "Our DMO commitment is 25% of production," explained Dileep to Kontan, Sunday (16/7).

In the first quarter of 2023, BUMI recorded a volume of coal mined of 16.1 million tons, a decrease of 1.22% from the previous 16.3 million tons in the first quarter last year.

The commitment to fulfill the DMO was also conveyed by PT Adaro Energy Indonesia Tbk ( ADRO ).

Adaro Energy's Head of Corporate Communication Febriati Nadira said domestic coal sales were one of the company's main sales objectives.

"Sales to Indonesia account for 25% of Adaro's total sales in the first quarter of 2023," explained Febriati to Kontan, Sunday (16/7).

Just so you know, ADRO's production and sales volume in the first quarter of 2023 rose 29%, to 15.69 million tons and 15.72 million tons, respectively.

In comparison, production and sales volumes in the first quarter of last year were only 12.15 million tonnes and 12.20 million tonnes respectively.

Image source: ANTARA FOTO/Nova Wahyudi

Source: https://industri.kontan.co.id/news/pengusaha-batubara-pastikan-komitmen-dmo-terpenuhi