The Ministry of Energy and Mineral Resources (ESDM) revealed that it is currently working on a new mechanism for the domestic market obligation (DMO) for coal power plants operated by PT Perusahaan Listrik Negara (Persero) or PLN."If the DMO price also affects subsidies and so on. Maybe the mechanism, what kind of mechanism is right is currently being discussed," said the Director General of Mineral and coal at the Ministry of Energy and Mineral Resources, Tri Winarno when met at the Ministry of Energy and Mineral Resources, Friday (7/2/2024).Tri did not deny that entrepreneurs do want high coal prices to sell, while PLN buys coal at cheap prices. Tri also understands the requests from a number of entrepreneurs."It's a natural request, it's natural. However, the point is how to ensure that the distribution is really appropriate. For PLN, for the needs of the people, it's about that," he said.According to the Decree of the Minister of Energy and Mineral Resources No.255.K/30/MEM/2020 concerning the Fulfillment of Domestic coal Needs in 2021, coal producers are required to sell 25% of their annual production plan for domestic needs.Meanwhile, based on the Regulation of the Minister of Energy and Mineral Resources No. 9/2023 concerning Amendments to the Regulation of the Minister of Energy and Mineral Resources No. 16/2020 concerning the Strategic Plan of the Ministry of Energy and Mineral Resources; the government sets the DMO price of coal for absorption into PLN's steam-powered power plants (PLTU) at USD 70/ton, while outside of that it is US$90/ton.When asked about the number of DMO requests that entrepreneurs want, Tri was reluctant to elaborate further. "There is no exact number, not yet," he added.
Source https://djakarta-miningclub.com