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Thursday, 01 November 12
INDONESIA HAS REVISED DOWN ITS 2012 DOMESTIC MARKET OBLIGATION REQUIREMENT FOR COAL


COALspot.com - Minister of Energy and Mineral Resources of Indonesia has revised down its 2012 domestic market obligation requirement due to lower domestic consumption.

According to KepMen 909.K/30/DJB/2012 issued on 31 October 2012, the total coal requirement in year 2012 will be around 67.25 million tons including 37.18 million which will be consumed by state owned electricity generator PT.PLN. Indonesia is expected to consume only around  67.25 million tons of coal in 2012, which  is equivalent to around 20.47 percent of Indonesian’s total estimated coal production in year 2012.

According to available information, the original DMO allocation for 2012 was 82.02 million tons coal.

PT. Adaro Indonesia is the largest supplier of coal to domestic market in 2012 and will supply around 9.826 million tons of coal under domestic market obligation and  followed by PT. Kaltim Prima coal which is requested to supply 9.274 million tons.

55.696 million tons of coal is expected to come from CCoW holders and 2.661 million from state owned coal producer PT. Bukit Asam and the remaining quantity is from IUP holders. Twenty IUP holders together to supply around 8.891 million tons of coal to domestic market under domestic market obligation.

Minister of Energy and Mineral Resources of Indonesia has recently declared the quantity of coal to be supplied to domestic market in 2013 under DMO regulation. According to media reports, the government has sets 74.30 million tons of coal under domestic market obligation (DMO) in 2013. The 2013,  DMO volume is equivalent to 20.30 percent of the target production volume or is around 337 million tons to 366.04 million tons forecasted production level.

According to decree signed by Minister of Energy and Mineral Resources Jero Wacik on October 8, Indonesia’s largest coal producers such as PT Adaro Indonesia, and PT Kaltim Prima Coal  will allocate 10.15 million tons and 10.76 million tons respectively for domestic market in 2013.

“ The domestic coal prices are better than current export prices. Hence coal producers pushing more coal to domestic market, “ said a coal supplier.

Coal miner Exploitasi Energi Indonesia has secured a coal deal from state utility Perusahaan Listrik Negara under which it will supply 40 million metric tons of coal to the state firm across 20 years, a media report said.

The Indonesian House of Representatives agreed on the formation of the new “North Kalimantan” province on 19 October. North Kalimantan, which will splits from “ East Kalimantan”  and will cover five districts in what is currently considered East Kalimantan, including Tarakan, Nunukan, Malinau, Bulungan and Tanah Tidung which are coal rich regencies in East Kalimantan.



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