In the coal mining context, the ‘Domestic Market Obligation’ (DMO) requires coal producers to first distribute a set amount of coal within Indonesia before looking to distribute the coal elsewhere. Minister of Energy and Mineral Resources Decision No. 1604K/30/MEM/2010 sets out (1) precisely what the level of domestic demand is, (2) the exact percentage that must be fulfilled by coal mining firms, (3) which firms must contribute, and (4) which Indonesian partners are authorized to receive the contribution.
The Decision implements Article 7 (3) of Minister of Energy and Mineral Resources Regulation No. 34 of 2009, where it is mandated that the Minister will, in short, decide on the finer details of the DMO upon various considerations, and review the situation every year to see if adjustment to the DMO is required.
The first consideration, as is formalized within the Decision, is that Indonesia’s domestic demand for coal in 2010 is estimated to be 64.96 million tons. On that basis, the Minister has decided that coal mining firms must at least collectively fulfill 24.75% of that demand (16.24 million tons) by marketing a certain proportion of produced coal within Indonesia.
The firms that must contribute a percentage of production to the domestic market are listed in Attachment II of the Decision. The list is comprises of 36 firms in Coal Mining Exploitation Working Arrangements (‘PKP2B’), 6 firms with Mining Concessions (‘KP’) and/or Mining Business Licenses (‘IUP’), and 1 state-owned enterprise.
The coal must be distributed (ostensibly, sold at some soon-to-be determined price range) to Indonesian ‘designated domestic users’; these parties are listed in Attachment I of the Decision.
The coal DMO has been the subject of many questions. Not all are answered by this Decision due to its specific purpose.
Determining the exact proportion of coal production that each individual firm must contribute to the collective DMO remains unclear. Price determination for the coal sold in the Indonesian market remains unclear. Which firms sell to which Indonesian partners, or whether that much structure is necessary, remains unclear. How the Ministry establishes that all individual transactions amount to fulfillment of the collective coal DMO remains unclear.
This Decision has been in force since 19 April 2010.
In the coal mining context, the ‘Domestic Market Obligation’ (DMO) requires coal producers to first distribute a set amount of coal within Indonesia before looking to distribute the coal elsewhere. Minister of Energy and Mineral Resources Decision No. 1604K/30/MEM/2010 sets out (1) precisely what the level of domestic demand is, (2) the exact percentage that must be fulfilled by coal mining firms, (3) which firms must contribute, and (4) which Indonesian partners are authorized to receive the contribution.
The Decision implements Article 7 (3) of Minister of Energy and Mineral Resources Regulation No. 34 of 2009, where it is mandated that the Minister will, in short, decide on the finer details of the DMO upon various considerations, and review the situation every year to see if adjustment to the DMO is required.
The first consideration, as is formalized within the Decision, is that Indonesia’s domestic demand for coal in 2010 is estimated to be 64.96 million tons. On that basis, the Minister has decided that coal mining firms must at least collectively fulfill 24.75% of that demand (16.24 million tons) by marketing a certain proportion of produced coal within Indonesia.
The firms that must contribute a percentage of production to the domestic market are listed in Attachment II of the Decision. The list is comprises of 36 firms in Coal Mining Exploitation Working Arrangements (‘PKP2B’), 6 firms with Mining Concessions (‘KP’) and/or Mining Business Licenses (‘IUP’), and 1 state-owned enterprise.
The coal must be distributed (ostensibly, sold at some soon-to-be determined price range) to Indonesian ‘designated domestic users’; these parties are listed in Attachment I of the Decision.
The coal DMO has been the subject of many questions. Not all are answered by this Decision due to its specific purpose.
Determining the exact proportion of coal production that each individual firm must contribute to the collective DMO remains unclear. Price determination for the coal sold in the Indonesian market remains unclear. Which firms sell to which Indonesian partners, or whether that much structure is necessary, remains unclear. How the Ministry establishes that all individual transactions amount to fulfillment of the collective coal DMO remains unclear.
This Decision has been in force since 19 April 2010.
Ada Pertanyaan? Hubungi Kami 
Professional Solutions
University Solutions
Pro
My Workspace
Pro AI
Terfavorit
Allex QnA
Pro Compliance
