47 coal companies have potential to meet 100% DMO: minister

47 coal companies have potential to meet 100% DMO: minister

A coal pile in Palembang city, South Sumatra province, on January 4, 2022. (ANTARA PHOTO/Nova Wahyudi/wsj/uyu)

Thus, we have only given export permits to companies that have met more than 100 percent of their DMO.
Jakarta (ANTARA) - Energy and Mineral Resources Minister Arifin Tasrif has said that 47 coal corporations have the potential to fulfill more than 100 percent of their obligated coal sale percentage for domestic requirement (DMO).

During a working meeting with Commission VII of the House of Representatives here on Thursday, he said his ministry has evaluated the DMO achievement of each company.

Around 47 companies have the potential to meet DMO of more than 100 percent, 32 corporations can fulfill 75–100 percent DMO, 25 enterprises can achieve 25–75 percent DMO, 17 enterprises can meet 25–50 percent DMO, while 29 companies can only reach 1–25 percent DMO, the minister said.

In addition, there are 428 companies that have never met the conditions or have zero percent DMO, he informed.

The minister said that the ministry had sent two teams to assess the coal shortage, which led the government to issue a coal export ban on January 1, 2022.

The first team was assigned to review the coal supply at 10 coal-fired power plants (PLTUs), he informed. It turned out that their coal stock was quite critical, he said. Moreover, the number of PLTUs with critical coal stocks grew to 17 units, he added.

Meanwhile, the second team was deployed to inspect the coal export activities in a number of provinces, Tasrif said. It was found that hundreds of barges and dozens of large ships were ready to export the coal, he added.

Hence, considering that state-owned electricity provider PT PLN uses about 10 million tons of coal each month, the government tried to reschedule the export or reallocate coal stocks, he noted.

"Thus, we have only given export permits to companies that have met more than 100 percent of their DMO," Tasrif said.

Related news: Coal export permits only granted to producers fulfilling DMO: Minister

Currently, the government has secured 16.2 million tons of coal to meet PLN’s demand thanks to the support of coal producers and logistics transport associations, he noted.

"We can ensure that the supply of coal is secured until the end of January 2022," he added.

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