The Ministry of Energy and Mineral Resources (ESDM) has stated that the domestic coal supply obligation (Domestic Market Obligation or DMO) target for 2025 will be higher compared to 2024.

Julian Ambassadur Shiddiq, Director of Mineral and Coal Program Development at the Ministry of Energy and Mineral Resources (ESDM), said the DMO target for this year is 239.7 million tons.

"It is 239.7 million tons" Julian said when contacted by Kontan on Friday, January 17.

In comparison, this figure is higher than the DMO target for 2024, which according to the Minerba One Data Indonesia (MODI) is 181.3 million tons. The actual realization reached 209.93 million tons, meaning the DMO percentage for 2024 was 115.79%.

Thus, compared to last year's target, the 2025 DMO target represents an increase of 24.36%.

Julian also mentioned that the target increase is based on calculations from the results of multilateral meetings with coal industry stakeholders.

"(The target) is from the prognosis following our multilateral meetings with industry players who use coal" he added.

Another consideration is based on the 2025 Electricity Supply Business Plan (RUPTL).

"It also includes analyzing the RUPTL" he briefly added.

He explained that a portion of the DMO for this year will still be allocated to meet the needs of Steam Power Plants (PLTU).

Previously, the Indonesian Coal Mining Association (APBI) predicted that Indonesia's demand for coal in 2025 will continue to increase, especially to maintain energy security.

"The coal business in 2025 will still be driven by domestic and export demand for coal to ensure energy security" said Gita when contacted by Kontan on Monday, December 30.

Meanwhile, the Executive Director of the Indonesian Mining Association (IMA), Hendra Sinadia, explained that the DMO supply for 2024 has been implemented well. One indicator is the absence of any power plants facing coal supply shortages.

"Domestic coal consumption is not just for PLN (State Electricity Company) but also for other industries. The share of coal consumption for the electricity sector is still around 65%," Hendra told Kontan on Friday, January 17.

With the increase in the DMO volume this year, he believes the government will also target an increase in both production and domestic coal consumption.

However, Hendra once again urged the government to evaluate the DMO coal price for PLN, which has remained unchanged at USD 70 per ton for several years.

"I believe the selling price to PLN of USD 70/ton should be reconsidered. It has been in place since 2018, while operational costs have increased each year" he said.