Indonesia's Energy Ministry Tightens Oversight of Coal DMO Supply

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is strengthening oversight of the Domestic Market Obligation (DMO) that requires coal miners to allocate a portion of their production to the domestic market. The ministry has assigned a total of 212 million metric tons of coal for 2026, with 154 million metric tons earmarked for state‑owned electricity firm PT PLN’s coal‑fired power plants. As of May 2026, contracts covering 144 million metric tons have been signed and deliveries of about 130.5 million metric tons are expected by year‑end. ESDM will monitor compliance through tools such as the Simbara system and will impose fines of $5 per ton for non‑compliance, while miners receive $45 per ton for meeting the DMO.

Director General of Minerals and Coal Tri Winarno emphasized that “Ditjen Minerba secara berkala melakukan pemantauan terhadap kepatuhan pelaksanaan DMO.” The Center of Energy and Resources Indonesia (CERI) also urged stricter enforcement, noting that the ministry can halt export permits for violators. In parallel, the House of Representatives’ Commission XI, chaired by Bambang Patijaya, called for improved procurement governance for PLN’s coal purchases, stressing that the process must be “profesional, transparan, dan tidak memberikan ruang bagi praktik fraud.”